US Airways Gives CEO Siegel $11M Package

SteveC

SteveC

"Laconic"
Staff member
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ARLINGTON, Va. (AP) -- At a time when US Airways is seeking another round of pay concessions from its workers, the airline's board has awarded chief executive David Siegel a compensation package with a potential value of nearly $11 million.

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Full Story Here.
 
Granted, he did do a lot to help US Air out of bankruptcy, but that $600,000 pay check could put it right back in there. Wanna help out, take one for the team Siegel. Reminds me of the South Park episode where they took Stan around to show him all the depressed celebrities losing money b/c of Napster. "Britney Spears is sad. She had to sell her Gulfstream V. Now she only has a Gulfstream IV."
 
This ass ought to get a medal. He really is doing an excellent job at turning a large company into a small barley existing organization.
smirk.gif
 
These guys just never seem to learn from the mistakes of their peers, do they?

Gonna be hard to get any concessions from anyone -- creditors, leaseholders, or employees -- when you're handing yourself an $11 million pat on the back.
 
Well, looking at his actual base salary, he is taking home 600k a year, which is still a lot for a company that is in the position it is, but no where NEAR the 11mil that everyone is up in arms about. 100k is coming from "other cash incentives" which are probably things that he will get if he meets certain targets, like X amount of ROE or something like that. This is only good for the next year of his contract. Even being liberal, I don't think that they will come around completely 650k for the year. Okie, then you have stocks. the 1.3 million shares were handed to him. They are valued at 8.4 million (not sure where that number is coming from as the stock is currently at $4 a share. I guess it is the 7.35 strike price they established for his options.) BUT he can't do anything with them for one year. That means that if the company goes bye bye in the next year, he aint got nothing. So the stocks are mostly a short term incentive to keep the company going for AT LEAST another year. The stock options are pretty standard, even when a company is in the situation that USAir is in. He can't do anything with them for a few years, and even then, the company will have to be doing MUCH better by then for the options to be worth anything.

I'm not saying that I agree completely with what they did, but it isn't as bad as some of the past travesties that have occurred in the industry. All he is really getting out of the deal is $700,000. In one year, IF the company's still around, he will be getting 8 million. But think about it this way... what better way to motivate a CEO to try to turn around a company then an 8 million dollar Carrot?


Ethan
 
But Bob, if you're GE Capital, and Siegal comes to you asking you to drop the lease prices, what are you going to say? You think you'll say, sure, man, I want you to give yourself a $11 million pat on the back even though you're coming to me asking for me to cut your rates?

And he may say, well, it's not all cash, but you're sitting there thinking, so, I catch hell from my boss for cutting your lease rates and you'll give yourself $11 million?

Not sure that's going to fly.
 
I dont think its all that ridiculous, his salary is well under what his contract states. He is being offered an incentive package that isnt worth a dime right now. If he can pull thru there is an 11 million dollar carrot for him like bobdduck stated.

600k isnt a big paycheck for a CEO. He recieved no bonuses last year, and he pulled them out of bankruptcy then, didnt he? I am sure they dont want him to leave, so they offer a a sizeble incentive for him to stay on and try to save the company. If he did leave who would want the job? Can you tell me what qualified executive would apply to be a CEO of a company thats about to go back into bankruptcy for a 600,000 dollar paycheck? Thats just silly. A captain for US prolly makes somewhere in the 100-200K range, Seigel only makes 3 times that, and I guarentee you that his work is more than 3 times as difficult.

I want to fly for the majors someday and make the big bucks, and some execs do get paid way too much, but this time I dont think Seigel's package is out of line.

-Brian
 
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