Pilots Call American Airlines Bonuses “Stunning:” Airline Says They Are Routine

May 2, 2019 Admin 0

The following Article was written by Ted Reed and posted on Forbes.com.

On the American Airlines earnings call Friday,  CEO Doug Parker said management employees received 51% of their targeted bonus for 2018 – meaning some mid-level managers received bonuses of about 9% — a disclosure that came as a surprise to the carrier’s pilots union.

American’s short-term incentive plan is tied to pretax profits: the threshold is $3 billion. Responding to an analyst’s questions about the plan, Parker said that while 2018 pretax earnings were slightly below $3 billion, the incentive is based on a total that is calculated … Read More...