Seattle Press on Line - The Shameful Greed Of Airline CEOs

The Shameful Greed Of Airline CEOs

By Jim Hightower

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May 09, 2003 --

"UNITED WE Stand," shout the red, white, and blue CEOs of America's airlines as they rush to Washington to explain that their industry needs $3 billion in taxpayer subsidies to keep flying in these perilous economic times.

Meanwhile, back at headquarters, these same CEOs are shouting quite a different message at their employees. Instead of "United We Stand," it's "You're On Your Own," as the top dogs are firing thousands and demanding cuts of one-third to one-half in the paychecks of the employees that remain, plus making huge cuts in worker pensions.

"Well," hrrump the CEOs, "we're accepting cuts in our pay, too!" Look at Glenn Tilton, honcho at United Airlines. Poor Glenn took an 11 percent salary whack last year and is taking another 14 percent this year, they point out, tears welling in their eyes at the thought of Tilton's sacrifice in the common cause.

Yeah, "poor Glenn" is down to only $712,000 in salary this year. But wait ... there's more. He's also getting $1.5 million in stock payments this year, a $3 million "signing bonus," and a special $4.5 million pension payment. His total haul is nearly $10 million. Talk about your friendly skies.

Likewise, ol' Leo Mullins at Delta Airlines, says he's cutting his salary to barely $600,000 this year, as well as giving up some $6 million in bonuses and stock payments. What a guy, huh? Before giving him the Golden Heart Award, however, let's note that he quietly is pocketing millions in corporate cash for a special pension fund he set up for himself this year, including extra payments to cover the taxes that he will owe on the special pension. Now that's putting the gold in the "golden years," isn't it?

Senator John McCain believes we should not bail out airlines until the CEO ripoffs end. To back McCain's effort, call his office: 202-224-2235.

Reader Comments

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Halsey Bartlett Jr	May 10, 2003	Barefoot Bay, FL	former ramp agent
I absolutely agree with the context of the article. Airline management, top heavy and overpaid should take the brunt of the cost cuts. Many former airline workers like myself lost thier jobs as a direct or indirect result of the terrorist attacks on September 11 (2001). Most of us LOVED our jobs, like the saying goes in the industry "it is in our blood". We loved it not for the pay (ground personnel such as ramp agents etc are not well paid) but for the true interest and love for thier job. This should be the attitude of the executives. In todays troubled times for the airlines those who have commercial aviation "in thier blood" should have no problem remaining in thier positions and accepting thier share of the cutbacks. For most of those there looking for high salaries, get out. I would give just about anything to return to any airline and I would work for next to free until the that airline rebounds. What the airlines need are the truely dedicated to work together to get the industry back to positive times.


niall nicholson	May 13, 2003	Hermosa Beach	unemployed ex pan am pilot
I hope they all go bankrupt for good. All of the major airilines conspired to force PAN AM out of business after the first terrorist attacts and I didn't hear anyone complain about government subsidies then.


Scott Peterson	May 15, 2003	Tampa, FL	General Chairman, IAM Union, D
Atta boy Jim! Why don't we directly tie CEO, CFO and COO compensation (NOT just salaries; but entire compensation packages) to that companies profit increases? And, if they don't turn a profit they get terminated just like a rank and file worker would if they didn't perform up to expectations. Rank and file labor in the airline industry is tired of continually 'bailing out' their companies due to poor upper management decisions. Almost as tired as they are of hearing the excuses given by these CEO's for poor performance. Seems it's NEVER their fault. Keep up the good work!


Mark E.J. Fay	May 17, 2003	California	Aviator
Airline executive compensation is a case of NOT getting what you pay for. But problems with our air transport industry go far beyond that. Sen. McCain is correct that we should not bail out airlines, but the reasons include more serious problems than obscene exec. pay. As Halsey Bartlett, Jr. says, airlines need truly dedicated people. Dedicated includes ethical, moral, honest people with integrity. For at least a generation, a growing group of executives in airlines, manufacturing, and in government have been defining cronyism and ruin in US air transport. For a particularly egregious example of the effects of this practice, read 'What really brought down Flight 592' at www.Airworthy.US.


A Monaco	May 25, 2003	Pittsburgh, PA	Pilot, US Airways
CEO Steven Wolf at US Airways recieved 15 million in severence 2 days before bankruptsey was declared at US Airways. Another $15 million paid to President Gangwal and 5 Million paid to Nagin,(corporate Lawyer). The current Board of Directors is now reviewing that payment and makeing sure there is nothing public stated about that review.. Let us not forget these ciminals who gave away $2 Billion cash to buy back stock in US Airways to increase their percentage of ownership; in a failed attempt to sell US Airways to United. Rather than reinvest those profits back into the company. Be also reminded that Wolf and Gangwal's pay packages were $15 Mil per year "EACH, every year they were at US Airways.


Karen Walden	May 28, 2003	Charlotte NC	Airline Agent
Let's consider the government bailing out the FHA mortgages of the 'Downsized, Pay cut, laid off, furloughed EMPLOYEES, of the Airlines, that have suffered at the hands of something economically worse thant 9/11, the gross greed and mismanagement of the airlines! Stephen Wolf former CEO of USAIRWAYS, should be investigated, and forced to PUT back the funds he "acquired". No further funds should be put into the hands of management, until there is accountability to "How things really got to this state of financial distress".....CONGRESS NEEDS TO WAKE UP..not put more money in the CEO's hands.


nathan	Feb 21, 2004	oklahoma	pilot
It amazes me that someone who has had success in reaching the American dream, like an airline CEO, is hated with such class envy. C'mon, 2 million or 10 million CEO pay cut isn't going to save any airline. It will just make an airline lose it's CEO. Would each pilot trade an extra $500 a year for the loss of a savvy CEO? Those guys get paid a lot, but they have the leadership and aggresiveness to lead an airline through tough times. Tough times seem to be a breeding ground for jealousy and class envy. Give Airline CEO's a break.


GREG	Mar 17, 2004	CLT	Flying Passenger
Our Government and People need to wake up. All CEO's take big advantages of their companies, but airline CEOs really rake their companies across the coals. For US Airways Steven Wolf is sitting or hidding with his fat bank account made from Flying Tigers, United and US Airways, inaddition to Mr. Gangwald Steven Wolf's side kick is also doing the same thing and needs to be deported back to India. Currently for US Airways Mr. David Segal will probably leave soon and get a few million and his other Crownies he brought with him who really hasn't absolutely accomplished a thing except laid off thousand of people and has never displayed a future plan and has lied to all the employees for the past few months. This airline has potential to be a great airline if somebody had heart and cared about company employees, but most of all knows how to market the company and manage flights. In the past years US Airways has given up alot of great routes especially to the south where other carriers have sucked up them instantly and are loading aircraft. To conclude CEOs and Company Presidents who have never come up through the ranks of a business especially an airline should not be running a US air carrier. The US investors, US congress, US Senate and all flying public should wake up to these miss managed airlines before more people loose their jobs or a CEO causes a safety issue because finances were not properly used to maintain any type of aircarrier. Nathan from oklahoma you must work for a airline ceo.


Mari	Aug 06, 2004	Dulles (WDC)	flight attendant-retired
Message to the pilot who asked us to quit "picking on CEO's". GET A GRIP----It is obscene to pay a CEO millions...MILLIONS..when most of the employees are now making slave wages!!! If the CEO was worth millions, the company would not be in bankruptcy!!!!!!!!!!!!!!!!!!!


JO CALABRETTA	Aug 09, 2004	DEERFIELD BEACH, FL	RETIRED FLIGHT ATTENDANT
ALTHOUGH THE CEO'S PAY AND PERKS WILL NOT MAKE A BIG DENT IN THE DEBTS, THE GREED SURE MAKES A BIG DENT IN MORALE. WHAT MESSAGE ARE THEY SENDING THE HARD WORKING EMPLOYEES?? ALSO, ARE THEY WORTH THAT KIND OF MONEY?? EVIDENTLY NOT! THEY GIVE THEMSELVES BONUSES AND PERKS BASED ON THEIR ABILITY TO SQEEZE MORE AND MORE OUT OF THE EMPLOYEES THROUGH THREATS OF LOSING THEIR JOBS ALTOGETHER. PUTTING FEAR INTO PEOPLE IS NOT A TALENT...THE MAFIA EXTORTED PEOPLE BY USING THE SAME TACTICS!!


Bill Phillips	Aug 09, 2004	Seattle	Retired CSR
As Jo said, they are only sending the message that they could care less about the employees that work for them. The airlines these days want you to work for them for a period of 5-8 years and then move on to other fields. This way they have no obligations for retirement or medical benefits. You will have a group of people who will have no in-depth experience and could care less for the passengers they serve. Those of us who made a 30+ year career of the airline industry will become a thing of the past. Hey JO, remember the days back in LGA? Nunzio, Sweeney, Churns & Burns, Jackman, Rittenhouse and many more. We worked like crazy everyday and party hardie after. We were a family then. Now it is so different. The airlines cared for their employees back then, now we are considered only a liability and they HATE any liabilities.


Dave Rissmiller	Aug 10, 2004	Baltimore, Md.	Retired Airline mechainic
The airline industry has discovered that if they can go into chapter 11 bankruptcy protection, they can cut employee's wages and benefits. Mean while the top executives give themselves huge golden parachutes. Jimmy Goodwin, United's CEO for less then 2 years is the perfect example. He was promoted to CEO at UAL after being a no name do nothing manager. When he took the helm United was trading at 90 and there was over $7 billion cash in the bank. A little less then 2 years later the company was about to go into B/K and he was fired. At most companies when an employee is fired, they do not receive any benefits. But Jimmy was given a $50+ million "golden" severance package. When the employees complained, they were told that the BOD was just honoring his contract. It amazes me how quick and easy executives honor each others contracts, but, on the other hand, not their employees. At United, employees that were over 55 and had worked more then 10 years and retired before 7/1/03 could keep their health care benefits. Now United has changed its mind and is requiring those retirees to now pay. Is Glenn Tilton or any of the other top executives paying for theirs? I don't think so. It's not fair that this industry's top dogs are leaching off the employees,investors and yes the tax payer as well just getting fatter. It's high time that the government step in and take back these executive "golden parachutes".


M. Dooling	Aug 10, 2004	Georgia	retired
May God deliver Ps. 109 on the head of all involved with the deregulation and destruction of U.S. Air Carriers. Pilots at Delta should require the pay structure of all Board members and Management be revamped before agreement to any pay cut.

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