vermeer
Posts: 433
Joined: Fri May 12, 2000 6:21 am

AA Ceo Works For Free

Wed Sep 26, 2001 6:54 am

the CEO of American Airlines was on tv few minutes ago, and as a sign to commitment to his airline has decided to work for free ( no regular payment) for a year.

praiseworthy!
 
Trvlr
Posts: 4251
Joined: Thu Feb 17, 2000 9:58 am

RE: AA Ceo Works For Free

Wed Sep 26, 2001 6:59 am

Well isn't this a surprise. Kinda makes all of the people who have been writing letters to the editor in newspapers bitching about how the airlines don't deserve this bailout look really really stupid.

Aaron G.
 
Guest

RE: AA Ceo Works For Free

Wed Sep 26, 2001 7:05 am

Now, let's see their seriously overpaid pilots do the same! AA will be donating 20c of every dollar surrendered by staff to a fund for the relatives of the AA crew members killed in the aircraft hijacked on the 11th and to provide hardship intervention for staff.
 
Guest

RE: AA Ceo Works For Free

Wed Sep 26, 2001 7:06 am

Of course, he fails to add that he picked up options on 40000 units of AMR stock instead. Based on their value at close of business today versus their low point when he accepted them, thats about $109600 in profit already.
 
LoneStarMike
Posts: 2802
Joined: Sat Jul 01, 2000 1:02 pm

RE: AA Ceo Works For Free

Wed Sep 26, 2001 7:46 am

Unless something has changed from this morning, I believe your statement is a little misleading. He isn't going to work free for a whole year. He is going to work free for the remainder of THIS year (3 months). Still, a nice gesture, though.

LoneStarMike

 
Guest

RE: AA Ceo Works For Free

Wed Sep 26, 2001 8:00 am

symbolic gesture, but a good one. I know I couldn't live off my savings for 3 months.
 
Delta737
Posts: 469
Joined: Sat Jun 05, 1999 11:23 am

RE: AA Ceo Works For Free

Wed Sep 26, 2001 8:02 am

Seriously over paid pilots, niiiiiiiice.


Doug Taylor
Pilot
 
Guest

RE: AA Ceo Works For Free

Wed Sep 26, 2001 8:03 am

ASA Flygirl - true, but if AMR goes under, then that stock will be worth zip. And if he pulls it out of its perilous position, then he deserves every cent he makes!
 
Stratofish
Posts: 1033
Joined: Mon Sep 24, 2001 6:38 am

RE: AA Ceo Works For Free

Wed Sep 26, 2001 8:07 am

A really nice gesture!
Let´s hope it´s not only for PR reasons and more CEOs (not only of airlines) will follow.
rgds
The Metro might be the Sub(optimal)way
 
tsully
Posts: 680
Joined: Tue Mar 20, 2001 5:02 pm

RE: AA Ceo Works For Free

Wed Sep 26, 2001 8:08 am

Nice gesture, but impractical for other employees to do the same. If I recall, AA's CEO's base salary for 2000 was more than $750,000. He then received around 1.4 million in bonuses. And that doesn't include his long term payment (mainly stock options) of 2+ million.

I'd say he is doing a nice, symbolic gesture. But there is no way an F/A making 30k per year can afford to follow in his footsteps.

Pilots cannot go without pay and still live in the manner to which they are accustom.
It is not as simple as some of you people think for pilots to just cut their salaries or flat-out go without pay.

It is much easier for the upper-management to work without pay. Surely they can live off the fat of the land for a while anyway...

sully
I love America. I guess that makes me Bush's poodle, but I'd rather be a dog in New York City than a prince in Riyadh.
 
AAR90
Posts: 3140
Joined: Fri Jan 21, 2000 11:51 am

RE: AA Ceo Works For Free

Wed Sep 26, 2001 12:07 pm

A. No salary for remainder of the year (a little over 1/4 of his salary).
B. No bonus payments this year or last year.
C. AMR stock purchase was done using his own cash on the open market. No options exercised, offered or utilized.
D. Carty freely admits all the above is a gesture and will have little impact on AMR's survival. He also admits few AMR employees can make such a gesture, but since he can..... he is.  Big grin
*NO CARRIER* -- A Naval Aviator's worst nightmare!
 
User avatar
yyz717
Posts: 15689
Joined: Mon Sep 10, 2001 12:26 pm

RE: AA Ceo Works For Free

Wed Sep 26, 2001 12:11 pm

It's easy to make these gestures when you've been pulling in millions for a few years. Methinks it's a little hollow. In just 14 weeks...Jan 02...his pay restarts.
I dumped at the gybe mark in strong winds when I looked up at a Porter Q400 on finals. Can't stop spotting.
 
AApilot2b
Posts: 451
Joined: Wed Nov 01, 2000 12:38 pm

RE: AA Ceo Works For Free

Wed Sep 26, 2001 12:22 pm

I think AAR90 does a good job explaining this and I believe that gesture, or no gesture, it is the sign of a true leader to do such a thing. Lead by example. It rallies the support of employees and customers alike and is not "hollow." It is so easy for those of us who don't make a lot to criticize "the rich man." Don not only has a good business mind, but he is also a good man and should not be bashed for making a decent gesture.
 
Guest

RE: AA Ceo Works For Free

Wed Sep 26, 2001 12:44 pm

I have no doubt that Carty is a decent sort and means well with this cut, but he is still a ruthless bastard who will sacrifice his people for AA's bottom line. Go look at Alaska or Southwest or AirTran for examples of people who won't.

I'm not saying one is better than the other, just pointing out that there are two ways to approach this situation and Carty has made his choice.
 
User avatar
yyz717
Posts: 15689
Joined: Mon Sep 10, 2001 12:26 pm

RE: AA Ceo Works For Free

Wed Sep 26, 2001 12:55 pm

One view of leadership is that you lead my example. Very few AA employees can afford to forgo their entire salary (let alone even a portion), so this gesture (while admittedly meant as a warm honest gesture) will only serve to remind the AA employees that Carty's income is so far in the stratosphere that it is indeed a hollow gesture.

Is Carty attending the funerals of the perished AA employees from Sept 11? Has he personally visited their families?? Maybe he has...but this is a bigger example of leadership.

I dumped at the gybe mark in strong winds when I looked up at a Porter Q400 on finals. Can't stop spotting.
 
oflove13
Posts: 113
Joined: Fri Mar 31, 2000 7:59 am

RE: AA Ceo Works For Free

Wed Sep 26, 2001 1:48 pm

looks like i am not the only one with this "communist Idea" that the ceo's and upper management should cut there salaries to help save money, didnt think someone would totaly give it up but good for them glad someone is trying to help out becides laying off workers

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