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American Airlines CEO Resigns

April 25, 2003 - 7:35pm

I can hardly believe that Don Carty resigned from American Airlines yesterday after being caught in setting aside bonuses and benefits for upper management while asking the labor unions to approve major cutbacks.

The other day at school a few of us were discussing this case. I was totally against the AA management and truly believe they did something wrong. However, a classmate said he could understand what upper management was thinking - that they had to provide these types of benefits to their management team in order to keep them at the company. In my opinion, if the people you've got at the top won't sacrifice along with everyone else to keep a company going, then you don't need them. No matter how good you think they are as managers, if they're not loyal to the company, especially the workers, they're no good. When it's my turn to be upper management, I can promise you won't see me pulling this kind of crap.

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Comments

That trend is definitely changing. Stockholders were willing to let these executives rake in ridiculous salaries in the past because the financials looked good - not because of any personal success of the management, but because of general financial success of the economy. (or in a small number of cases, "creative accounting") Now that the economy has taken a turn for the worse, stockholders are less likely to continue to pay executives the salaries if they can't run their businesses in a down market. I don't know why managers think it's their right to continue to receive huge bonuses despite the fact that the company stock is going in the toilet.
Posted by Jeff on April 25, 2003 - 9:30pm
I think AA should have had a reduction in the executive force at the same percentage as that of the "peons" and real workers. Executives don't make the planes fly or hand out in-flight refreshments. They certainly haven't earned to keep their jobs in light of the current state of their company!
Posted by Texas T-Bone on May 1, 2003 - 8:50pm
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Posted by fjkm qhizg on February 4, 2007 - 2:54pm

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