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(Chicago Trib)   American Airlines ordered to justify the $20 million severance given to their CEO. "Because he asked for it" apparently wasn't a good enough explanation   ( chicagotribune.com) divider line
37
    More: Followup, American Airlines, executive directors, Americans, AMR Corp., unsecured creditors, United States bankruptcy court, US Airways Group, explanations  
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14446 clicks; posted to Business » on 18 Mar 2013 at 11:44 AM (5 years ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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The_Gallant_Gallstone
2013-03-18 11:51:54 AM  
9 votes:
Contracts can be voided in the interests of the public, especially when they are imposed by greedy unio...

...wait, it's for a CEO platinum parachute?

Contracts are sacred, invioable bonds of trust that cannot be broken under any circumstances.
Weaver95 [TotalFark]
2013-03-18 10:42:26 AM  
6 votes:
Obviously that man needs a tax cut. Can't have $20 million without a tax cut!
CigaretteSmokingMan
2013-03-18 01:55:04 PM  
5 votes:
i172.photobucket.comView Full Size
kab
2013-03-18 12:10:20 PM  
4 votes:

tenpoundsofcheese: "because he negotiated it as part of his compensation and the board agreed with it after consulting with third party pay consultants" is a good answer.


Wow, the CEO ballwasher brigade hit this thread in record time.
Tax Boy
2013-03-18 11:59:04 AM  
4 votes:
aidthoughts.orgView Full Size
Silverstaff
2013-03-18 12:50:39 PM  
3 votes:

ZAZ: Bankruptcy court is not bound by prior negotiations, contracts, solemn vows, or even the opinion of pay consultants.


Bingo.

There's a reason I have tenpoundsofcheese farkied as "ten pounds of derp".  He's either a very short-bus special Farker incapable of operating outside a Fox-Limbaugh field, or performing some truly wonderful performance art.  Unfortunately Poe's Law prevents me from knowing which one, a sort of internet Heisenberg's Uncertainty effect.
vudutek
2013-03-18 11:48:50 AM  
3 votes:
10lbofbatshiatcrazy has zero problem with folks getting screwed out of their pensions, but god forbid the 1%er take a hit to his golden parachute, because socialism!
NightOwl2255
2013-03-18 11:57:23 AM  
2 votes:
What's wrong with you looters? Ayn Rand would be ashamed of you. He's a CEO. He's a Rock Star. By the very definition of CEO in American business he deserves every penny he can get. Who do you hanger-ons think built this nation. When Atlas asked what he should do, shrug, I said.
Linux_Yes
2013-03-18 11:52:18 AM  
2 votes:

Duke Phillips' Singing Bears: ZAZ: Bankruptcy court is not bound by prior negotiations, contracts, solemn vows, or even the opinion of pay consultants.

Just ask AA's pilots.



i didn't know Alcoholics Anonymous had pilots.   kewl.
Linux_Yes
2013-03-18 11:48:40 AM  
2 votes:
Just let them eat Cake!!!

and please, U.S. Government, continue to allow the airline companies to merge into each other to create even larger companies and less competition. it can only help.


God bless, Uncle Sam.

--a Patriotic Amerian.
namatad [TotalFark]
2013-03-18 11:09:03 AM  
2 votes:

Weaver95: Obviously that man needs a tax cut. Can't have $20 million without a tax cut!


rich white guy leaving a company
HOW could he live without 20 cash for a leaving bonus ???
MyRandomName
2013-03-18 02:16:22 PM  
1 vote:

Weaver95: Obviously that man needs a tax cut. Can't have $20 million without a tax cut!


What a good liberal you have become. All delusion of being a libertarian has vanished.
Magnanimous_J
2013-03-18 01:51:20 PM  
1 vote:

Killer Cars: In fairness, there are a lot of knockoffs on the market. To the untrained eye and touch, it's very hard to differentiate between the high quality blue whale foreskin leather, and a cheap replacement such as sloth taint leather, which South American crime orgs flooded into the marketplace during the late 90's.



I got burned by that myself. Protip: Don't buy your whale dong leather from a guy named Rodrigo who does business out of a Del Taco.


My Corolla just looks ridiculous now.
Killer Cars
2013-03-18 01:16:46 PM  
1 vote:

wingnut396: If he had been paid a reasonable amount for the rare expertise and talent only a CEO of major companies posses, he would have had the non-cracking whale penis foreskin leather.


In fairness, there are a lot of knockoffs on the market. To the untrained eye and touch, it's very hard to differentiate between the high quality blue whale foreskin leather, and a cheap replacement such as sloth taint leather, which South American crime orgs flooded into the marketplace during the late 90's.
Brainsick
2013-03-18 01:16:00 PM  
1 vote:

tenpoundsofcheese: CeroX:

There ya go CEO, a company build on the backs of the employees and you "earned" your bonus... the same as everyone else...

Are you saying the current employees built the company?  I didn't know the company was that new.  Looks like they didn't do a very good job at building it since it is in bankruptcy.


Unlike the current CEO, who was there from the beginning, amirite?

/here's your sign
Nana's Vibrator
2013-03-18 01:13:58 PM  
1 vote:
DubtodaIll:

Well at least you're not wasting energy looking for things to be upset about instead of doing things that could put you in a situation where the actions of others have a smaller effect on your emotional well being.

I'm reading this but all I'm hearing is "congratulations on never spending time in the Politics tab, good sir"
Nana's Vibrator
2013-03-18 01:04:04 PM  
1 vote:

DubtodaIll: Aside from allowing yourself to feel morally superior to someone who has been much more successful than you, what's the point of being outraged about the fiscal operations of a corporation? No one is forcing you to use the product so if you don't like the company, don't use them.  Use of technological advancements is not a right or a necessity.  If the company wants to give this guy 20 million then I don't have a problem with it.  He may have done a shiatty job as far as we know but imagine how much he'd get if he had done a better job.  If he had produced a product exactly to your liking would 20 million be justified in your eyes?  The fact of it is it doesn't need to be justified, it's their money, they can do with it as they please, and they will.


well, since it's only one company and one severance and it has never happened to any other corporation ever, and the overall budget of that company certainly is not effected in such things as support personnel or safety, and the costs associated with their product has zero effect on the pricing of their competitors, I guess we 'll just let it go.  But I'm still watching, as I have been for many, many years, just in case a major corporation makes an outrageous financial decision, even just once.
April Bond
2013-03-18 01:02:15 PM  
1 vote:
He needs that $20 million to replace the cracked leather seats in his personal Learjet.  How is he going to fly his friends to the Superbowl when the leather seats in it are cracked?
DubtodaIll
2013-03-18 12:58:19 PM  
1 vote:
Aside from allowing yourself to feel morally superior to someone who has been much more successful than you, what's the point of being outraged about the fiscal operations of a corporation? No one is forcing you to use the product so if you don't like the company, don't use them.  Use of technological advancements is not a right or a necessity.  If the company wants to give this guy 20 million then I don't have a problem with it.  He may have done a shiatty job as far as we know but imagine how much he'd get if he had done a better job.  If he had produced a product exactly to your liking would 20 million be justified in your eyes?  The fact of it is it doesn't need to be justified, it's their money, they can do with it as they please, and they will.
stonicus
2013-03-18 12:55:38 PM  
1 vote:
twimg0-a.akamaihd.netView Full Size

We're scrapping the plan for the new GNB headquarters. This recession is killing us.  We're cutting anything non-essential. And I have a lot of tough choices to make at the bi-quarterly retreat in Saint Croix.
Harry Freakstorm [TotalFark]
2013-03-18 12:51:44 PM  
1 vote:
You know he asked for 21 million but we negotiated him down. It took weeks of meetings with lawyers and accountants and fiduciary experts but we finally arrived at an amount we could all be comfortable with.

So actually, we saved the company a million dollars? Where's our big thank you from the customer? A million bucks is a lot of money. But no. All we hear is "You gave some guy 20 million to leave" and "What's this $25 feet on the carpet surcharge?"
JackieRabbit
2013-03-18 12:48:18 PM  
1 vote:
Do you know how much work it is to bring a company to bankruptcy? Why these poor CEOs have to make multiple trips in their private jets to their fabulous Bermudan villas, attend board meetings, keep up with the latest trends in biz-speak, make bad decisions that they can later blame on a VP, write occasional nonsensical memos to staff, recommend trendy business books to senior management, attend three hour lunches, and make sure their assistant answers their email. It's brutal work, but these unsung heroes do it every day.
theorellior [BareFark]
2013-03-18 12:47:17 PM  
1 vote:

kab: Wow, the CEO ballwasher brigade hit this thread in record time.


If he hadn't, his supervisor would have called him in to ask why. You gotta keep on your toes when you're shilling for pay.
mytdawg
2013-03-18 12:40:43 PM  
1 vote:
I love the smell of sarcasm in the morning.
ChrisDe
2013-03-18 12:34:40 PM  
1 vote:
'Merican Airlines
A Shambling Mound
2013-03-18 12:33:59 PM  
1 vote:

HotWingConspiracy: It added that the payments would "motivate a strong management team during the integration process" to make the merger a success.

These same people will tell you that increasing pay for the rank and file will make them lazy.


The only possible response a rational person could provide to someone saying what you have quoted with a straight face would be a swift kick in the nuts. Once the response has been provided you let them roll around on the floor for a while and consider where that interaction may have gone wrong.

I am totally not kidding about that, either.
Phil Moskowitz
2013-03-18 12:23:52 PM  
1 vote:
Vulture Capitalism is a form of capitalism.
jaytkay
2013-03-18 12:19:53 PM  
1 vote:
He's getting $20M "leaving" American when it merges with US Airlines.

He remains chairman of the combined company.
  
cuddlebuggery.comView Full Size
The Stealth Hippopotamus
2013-03-18 12:18:36 PM  
1 vote:

CeroX: 251.74 bonus check to all the employees... is it much? not really. Did they earn it? you bet...




I wouldn't be so quick with that, have you flown AA lately??
maachubo
2013-03-18 12:08:33 PM  
1 vote:
Thanks Obama.

Or

I blame global warming.
sammyk [TotalFark]
2013-03-18 12:04:28 PM  
1 vote:

Linux_Yes: Just let them eat Cake!!!

and please, U.S. Government, continue to allow the airline companies to merge into each other to create even larger companies and less competition. it can only help.


God bless, Uncle Sam.

--a Patriotic Amerian.


It's done wonders for the banking industry. Seriously, what could go wrong?
digistil
2013-03-18 12:01:04 PM  
1 vote:

tenpoundsofcheese: "because he negotiated it as part of his compensation and the board agreed with it after consulting with third party pay consultants" is a good answer.


Why do I get the feeling you would champion the return of debtor prisons?
theorellior [BareFark]
2013-03-18 11:56:55 AM  
1 vote:
Stop telling your betters what they can and can't have. This guy is a Maker, so obviously deserves whatever largesse God sees fit to bestow upon him.
Duke Phillips' Singing Bears
2013-03-18 11:53:18 AM  
1 vote:

Linux_Yes: i didn't know Alcoholics Anonymous had pilots.   kewl.


Why do you think they invented autopilot?
The Stealth Hippopotamus
2013-03-18 11:33:01 AM  
1 vote:
I'd have strong words with my Union Rep.

"What the eff are we paying you for? He does all his own negotiations and look what he gets!!"

- Disgruntled Union Member
Elandriel
2013-03-18 11:26:28 AM  
1 vote:
Chapter 11 nulls all existing contracts and requires an almost unilateral re-write of obligations to creditors through the Chapter 11 plan, unless the case dismisses.  Even provisions such as "survives bankruptcy" are null; the power of the bankruptcy court supersedes pre-petition agreements.

The objection on its face has merit; they are committing 20 mil that could be disbursed to unsecured creditors, and instead giving it to some guy who basically lost his job.  The Trustee would be well within his powers to order a refund to be paid to creditors.  They are lucky he has only objected and not filed a motion to force turnover.
tenpoundsofcheese
2013-03-18 10:27:26 AM  
1 vote:
"because he negotiated it as part of his compensation and the board agreed with it after consulting with third party pay consultants" is a good answer.
 
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