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eksath
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Who Was The Highest-paid Airline Exec Last Year?

Mon May 16, 2005 3:22 am

According to Micheline Maynard, NYT:
"Who was the highest-paid airline executive last year, taking home $1.1 million? Not Gary Kelly at Southwest, the low-cost carrier that now flies more passengers than any other airline in the United States. His reward for running the most profitable American carrier was just $542,000. Nor Bruce Lakefield at US Airways, who received $425,000 as his company struggled to avoid liquidation. And forget about Gerald Grinstein at Delta, who earned a mere $250,000 as Delta battled to stay out of bankruptcy protection."

the rest is here:

http://www.iht.com/articles/2005/05/13/business/wbunited.php
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DAL767400ER
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RE: Who Was The Highest-paid Airline Exec Last Year?

Mon May 16, 2005 3:41 am

Doesn't surprise me that it's Tilton. What does surprise me is that he earned more than 4x what Grinstein earned. And since the pay of the CEO can be a good indicator of pay across the management, I guess we all know where UA can "cut some fat".
 
zvezda
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RE: Who Was The Highest-paid Airline Exec Last Year?

Mon May 16, 2005 4:06 am

$1M is modest compared to what Tilton could be earning if he had stayed in the oil industry.
 
highguy76
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RE: Who Was The Highest-paid Airline Exec Last Year?

Mon May 16, 2005 7:08 am

Quoting Zvezda (Reply 2):
$1M is modest compared to what Tilton could be earning if he had stayed in the oil industry.

What some of the lower tier employees are making is also modest compared to what they could be making at other jobs in other industries.
I don't think this argument holds water, especially in light of Tilton's lack of performance at UAL.
 
keesje
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RE: Who Was The Highest-paid Airline Exec Last Year?

Mon May 16, 2005 7:13 am

Gordon? I heard some rumours..
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aa757first
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RE: Who Was The Highest-paid Airline Exec Last Year?

Mon May 16, 2005 7:20 am

Quoting Highguy76 (Reply 3):
What some of the lower tier employees are making is also modest compared to what they could be making at other jobs in other industries.

Like what? What could a pilot do that could earn him $120k a year with his aviation degree? Most flight attendants I have spoken to said they would be working at Strawbridge's or as secretaries if they weren't flight attendants.

AAndrew
 
United Airline
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RE: Who Was The Highest-paid Airline Exec Last Year?

Mon May 16, 2005 7:27 am

How much does Cathay Pacific's CEO make per year? HK$ 10-30 million a year?
 
CALMSP
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RE: Who Was The Highest-paid Airline Exec Last Year?

Mon May 16, 2005 7:30 am

thats just it...these FA's coulnd't make anything near what they make flying anywhere else........i would say 75% dont have degrees to fal lback on.
 
MD11junkie
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RE: Who Was The Highest-paid Airline Exec Last Year?

Mon May 16, 2005 7:39 am

Seems that Tilton has no "face" whatsoever... he asks the employees to tighten their belts, and he is the best paid CEO in the industry?  Sad
What about Grinstein being the lowest paid of all of those mentioned? DL is the second airline at stake right now... shouldn't Tilton imitate Grinstein in that matter?

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DAL767400ER
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RE: Who Was The Highest-paid Airline Exec Last Year?

Mon May 16, 2005 8:32 am

Quoting MD11junkie (Reply 8):
DL is the second airline at stake right now... shouldn't Tilton imitate Grinstein in that matter?

He sure should. That would definitely be better in the eyes of the other employees. Taking Grinstein as an example, at the beginning of last year, he said that he would only make 500k and not take any bonuses (unlike Mr "$13million" Mullin). Then sometime during Q2, he said he would forego for the fourth quarter, and during Q3, he said he would not get paid in that month as well. You can't say that Grinstein isn't leading as an example with regards to pay.
 
United Airline
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RE: Who Was The Highest-paid Airline Exec Last Year?

Mon May 16, 2005 6:00 pm

Go to: http://www.cathaypacific.com/cx/intr...uments/71496/71496_Fsinglecopy.pdf

Please refer to page 60

Most of them make around HK$ 9 million to HK$ 20 million a year...... US$1= around HK$7.8
 
United Airline
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RE: Who Was The Highest-paid Airline Exec Last Year?

Mon May 16, 2005 6:05 pm

Didn't Tilton take a salary cut? Well he should.
 
Braniff727
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RE: Who Was The Highest-paid Airline Exec Last Year?

Mon May 16, 2005 10:35 pm

That article absolutely infuriates me. It spells out what a leach UAL is on the US airline industry. By abusing bankruptcy law, Tilton and company are keeping fares artificially low and hurting the more financially stable companies. Granted, UAL isn't solely to blame, the bankruptcy judge should be strung up too for letting this charade go on for as long as it has.

While I'm not saying they should shut down, they NEED to fix their problems, starting with the highest paid CEO. CEO's pay should be based on performance, and frankly, 2+ years under bankruptcy protection isn't something to brag about.
Climbing
 
aa757first
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RE: Who Was The Highest-paid Airline Exec Last Year?

Tue May 17, 2005 6:31 am

Quoting Braniff727 (Reply 12):
frankly, 2+ years under bankruptcy protection isn't something to brag about.

Why, as a matter of fact, it is.

The question isn't how the airline is performing when compared to other airlines, it is how it is performing when compared to itself. Where would United be without Tilton? No one can answer that question, but we can theorize.

It's like paying a special education teacher based on her student's standardized test scores. No kidding they are low, but how is that student performing in comparison to last year, or the year before.

AAndrew
 
Braniff727
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RE: Who Was The Highest-paid Airline Exec Last Year?

Tue May 17, 2005 9:40 am

Quoting Aa757first (Reply 13):
The question isn't how the airline is performing when compared to other airlines, it is how it is performing when compared to itself.

I'm sorry, I guess I forgot that underacheivers are to be praised because we don't want to hurt self esteem.

How is United performing compared to itself? Um, they are at the top of United's game I guess. Of course, that doesn't put money in the bank now does it?

That's like comparing a Yugo to itself. Yugos are certainly on par with Yugos. But I hate to break this to you, no one wants a Yugo.

United compared to itself is this, they losing buckets of money, with no clear plan on how to stop it. YAY! Meanwhile, on planet reality other airlines are getting screwed because of this beast's unfair advantage under Chapter 11 protection. They essentially don't have to pay bills, they continue to get extension after extension to come up with a way to make themselves viable. What a sweet deal!

I say it's time to sh** or get off the pot.
Climbing
 
B744F
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RE: Who Was The Highest-paid Airline Exec Last Year?

Tue May 17, 2005 10:07 am

Let me just throw this in. Stating salaries is just showing the bare minimum. You can bet NONE of those people earned that money, with their stock options, bonuses, etc. They probably are taking in double that, or more. Noone will ever know because it is all hidden away in their books. Accountants get paid handsomely to find ways for the execs to get away with making more than they should.
 
roseflyer
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RE: Who Was The Highest-paid Airline Exec Last Year?

Tue May 17, 2005 10:20 am

Here is a list in order of all of the major airline's CEOs. If you want me to look up regionals and others let me know and I can do it.


  • Lawrence Kellner.........Continental.....$6.51M
  • Joseph Leonard...........Airtran...........$5.67M
  • Douglas Steenland.......Northwest......$1.93M
  • W. Douglas Parker.......America West.$1.24M
  • Bruce Lakefield............US Airways.....$1.10M
  • William Ayer...............Alaska............$940.00K
  • Glenn Tilton................United............$777.00K
  • Herbert Kelleher..........Southwest......$710.00K
  • Gerard Arpey..............American........$649.00K
  • J. George Mikelsons....ATA...............$635.00K
  • Gerald Grinstein..........Delta..............$382.00K
  • David Neeleman..........JetBlue...........$335.00K
  • Jeff Potter..................Frontier...........$305.00K

Source: Yahoo Finance with numbers representing salary for 2004 fiscal year

[Edited 2005-05-17 03:21:47]
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