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Aug 4
AMR Corp. Gives CEO 23% Raise; Angers Pilots
Employees at American Airlines are angered at the management team as they learned that the CEO of the airline, Gerard Arpey, would be receiving a 23 per cent pay raise bringing his salary to $650,000.  In addition, AMR Corp., (AMR) the parent company of American Airlines, said Mr. Arpey would get other benefits based on stock appreciation rights and the award of other stock-based compensation. Several other top executives also received similar awards.  The pilots and other employees that gave up so much to keep the airline from bankruptcy a few years back, have said that their relationship with the management team has turned sour. 

"Regrettably, the concept of shared sacrifice and shared reward is now dead," Ralph Hunter, president of the Allied Pilots Association, told pilots in a message.

American spokesman Roger Frizzell, who said the airline and employees will continue cooperating, defended the compensation package for Mr. Arpey.

"There may be those who have concerns, but there are others inside the company, unions included, who feel his increase was more than appropriate and, in fact, about time," Mr. Frizzell said.

aa_logo.jpg "He's done a very strong job for the company, and many people recognize that. There's always going to be issues from any company about executive compensation and you're never going to completely resolve that," he said.

The Association of Professional Flight Attendants, which represents American employees, said in a message to employees last week that it was "disappointed to say the least by these irresponsible acts of management in the current industry environment."

Dallas Morning News


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