1. AA C.E.O. gets more dough: It's a good thing CEO Doug Parker isn't taking an annual salary. That would make explaining his multiple stock sales more difficult with his annual salary. While C.E.O. Parker made a big deal about forgoing his annual salary in lieu of stock sales, he failed to mention that a real C.E.O. would tie hisher salary or his/her total compensation to performance numbers of how his airline did rather than just stock performance. Parker sold 113,090 stock rights at prices between $40.508 and $40.65. After the sale, Parker continues to hold 1,661,386 shares of American stock. And that's in addition to his 2014 pay of over twelve million dollars.
The clip below is from Terry Maxon's blog in the Dallas Morning News Friday morning.
Get used to Doug Parker getting big payoffs from his stock awards. He’s set up to sell some stock automatically every month into 2016, and the ones so far have been based on stock values when US Airways shares were cheap. That means the gains are big.
Anyone who is miserable and angry that the American Airlines CEO is pocketing a lot of money from stock sales is going to stay miserable and angry for quite some time.
And all his top lieutenants are making a killing, too.
2. AA/USAir seniority issues: Long before the AA/USAir merger, the pilot groups from USAir and America West had a dispute over how those two airlines would properly integrate their seniority after the merger. This dispute is ongoing and in a 2-1 ruling last Friday by a panel of the Ninth Circuit U.S. Appeals Court determined that USAPA violated its duty of fair representation to former America West pilots. That ruling has the USAPA saying it "cannot be an adequate representative of US Airways (East) pilots and must withdraw from this proceeding." This is an interesting development for the new AA that has publicly stated that it's employee integration has been smooth. This ruling has the ability to postpone many of the economic gains that USAir and AA had hoped for with their merger. More news on this issue will be forthcoming. Please click on the link below for more information.
3. Local 512 scholarships: Every year, usually in July, the Local awards scholarship for those who qualify to receive money for their higher education. The application is DOWNLOADS section and must be filled out and returned by July 24th at 14:00. Drawings will be held at the 15:00 membership meeting on July 30th. if you have any questions, please call the office and speak to an Officer.
4. TWU reaches agreement with Southwest: Congratulations to our Brothers and Sisters at Local 556 who represent the flight attendants at Southwest airlines. They reached a tentative agreement on Thursday. Terms of the deal were not released, but the airline said they include wage increases, bonus opportunities, and work-rule adjustments. Please click on the link below for more details.