AA execs urged to forego bonuses
Last week, American Airlines flight attendants called on the top executives at their airline to refuse their bonuses. At the time, it was simply a question of money and fairness. Now, with the startling cancellation of thousands of flights this week because of mismanagement, the question is of competence.
Bonuses should be out of the question. Firings of some of these executives should be in the headlines.
Flight attendants and, more importantly, pilots are calling on the executives to forego their planned bonuses. Picket lines are authorized for protests on April 15th. It would make sense for the current management to acknowledge their mistakes and the millions they have cost the airline over the past week and renounce these bonuses.
Over the past five years, American Airlines executives have raked in almost $300 million in bonuses while pilot and flight attendants gave up more than $340 million to keep the airline out of bankruptcy.
American Airlines responded with the following comment, :
“Our management compensation is market-based, similar to that of many U.S. businesses including airlines. It is the same structure that has been in place for more than 10 years and is designed to align the long-term interests of shareholders and management. The value to individuals is completely at-risk and based on strict performance criteria”
I’m not certain what “strict performance criteria” AA is using, but I think the total meltdown of their maintenance program might enter into some sort of performance criteria. The long-term interests of the shareholders are best served if the management gives up these contested bonuses.
You may also be interested in these articles
Comments
Please share your thoughts...