Interesting article on UAL...

PGT

Well-Known Member
United Pilots: Glenn Tilton’s Excessive Pay Package Must Go

Chicago, Ill., September 29, 2008 – Pilots for United Airlines (Nasdaq: UAUA) today demanded that the UAL Board of Directors cut the pay for its CEO, Glenn Tilton, as a reflection of concern and solidarity with passengers and employees who are being forced to tighten their belts.

At $10.3 million a year, Tilton’s compensation package—including salary, stock grants, options, and other added extras—is the highest in the airline industry. The CEO of American Airlines is paid $4.6 million a year, the CEO of Southwest Airlines makes $1.3 million, and the CEO of JetBlue gets $514,000. United’s pilots believe that there is no justifiable reason for the worst airline executive to be compensated the most. United Airlines has lost more money this year than nearly all other U.S. competitors combined.

“United Airlines is losing money, cutting back on service, and asking passengers to pay more for less,” said Captain Steve Wallach, Chairman of the United Chapter of the Air Line Pilots Association. “It’s time for the Board to tie Tilton’s pay to his performance.”

Captain Wallach said that Tilton’s level of compensation is another example of excessive pay to chief executive officers. “His pay is not an entitlement; he should have to earn his money, just like everyone else does,” said the union leader. Captain Wallach noted United’s stock price has fallen from over $50 a share to the current price of about $10 a share.

“It’s an insult to the loyal passengers and hard-working employees of United to see the CEO pull down this kind of money when the airline is facing such deep challenges,” added Captain Wallach. “This pay package must go.”

Tilton’s excessive pay package is only one of a series of bad decisions by the management of United, which orchestrated fat bonuses for its top executives when the company came out of bankruptcy two years ago. Tilton and his team of executives have continually looked after themselves, to the detriment of the rank-and-file employees of the airline.

“The pilots want to do everything possible to make United the airline that passengers choose first,” said Captain Wallach. “A commitment to responsible service and fairness is part of that.”
http://alpa.org/DesktopModules/ALPA...iew.aspx?itemid=16202&ModuleId=12567&Tabid=73


The airline is bleeding cash while he is the top paid CEO...hmm wouldn't happen in any other industry.
If management is running the airline into the ground, why doesn't the board do something about it?
 

Scandinavian13

New Member
A while ago, I heard a story about some airline saving a ton of money by serving salads with one less olive each. It's an inventive solution to saving money that someone would not often think of at first.

This, however, isn't one of those situations. $4M a year is going to the guy who hasn't led the airline anywhere near profitability, and has taken what was once respectable service and made it a subscription service. Buy on board service and bag fees were made for the low cost carriers. Ironically, it's Southwest who's vehemently opposed (and still doing well) and the legacies who all jumped on board (and still aren't doing well). I think there's a mismatch here.
 

LoadMasterC141

Well-Known Member
Horsepoo...It happens in every other industry. Fat careless immoral a$$es running the companies of America. Thinking only of themselves. I hate them.
 

B767Driver

New Member
I would venture a bet that any entry level accountant at Bear Stearns or Lehman, earning $45k per year, would never have made the decision to assemble mortgage derivative securites and credit default swaps. Somehow, earning $150M a year plus $500M in bonuses either earns you the right to make irresponsible decisions or makes you stupid.

Basic decision making skills, evidently, don't correlate to one's paycheck size.
 

surreal1221

Well-Known Member
It makes you do both. Irresponsible decisions are made because you're stupid. . .

A shame that these tools get to play their game, with our lives, at our expense.
 

coa787

Unknown Member
Isn't JetBlue CEO Dave Barger taking a 50% pay cut for the second half of 2008? Continental Airlines CEO Larry Kellner gave up salary and bonuses entirely for the rest of 2008.
 

skydog

New Member
While I agree it is ridiculous that the CEO of the worst performing airline out there is the best paid, I don't see what point of calling for a salary reduction. Even if he worked for free, UAL would still be losing money (that argument ought to sound familiar to a lot of ALPA people). If anything, they should be calling for his termination. The guy is not effective at his job. Get rid of him and get someone who will be.
 
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