American Airlines CEO Donald Carty claims to have cut his "pay" by 88% since 2000. The airline is currently trying to persuade its workers to accept $1.8 billion worth of permanent cuts in pay and benefits.In a Town Hall meeting yesterday in Dallas, Carty faced restless employees and responded to questions from the floor, according to the Dallas Morning News (onerous registration required). In rsponse to a series of questions about management's sacrifices, Mr. Carty said that American's executives makes less than most of their colleagues at other big airlines. "I've taken an 88% pay cut since 2000; is that enough?" he added. Well, maybe. The problem is that executive "pay" is defined by much more than salary. Don't forget Steven Jobs has been receiving a salary of $1.00 per year since returning to Apple as CEO. Of course, that doesn't include the Grumman Gulfstream jet he received as a "bonus" from the Board of Directors.So the question is whether Carty was being disingenuous when referring to his "pay". Note that he didn't use the more accurate term "compensation". Perhaps the enterprising Morning News reporter will follow up on that statement and analyze Carty's recent compensation published in the company's 10K statement. If Carty, in fact, hasn't taken an 88% cut in total compensation since 2000, his answer shows the contempt managment feels for their employees.
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