During the past several days, there has been quite a bit of rhetoric about bonuses due to about 1000 managers at American Airlines. The pilots union would have you believe the payouts are extravagant and a slap in the face after all unions at American (and management as well) took pay cuts to help reduce operating expenses.
The incentives are tied to stock performance and it’s widely accepted as necessary if companies are to retain key personnel. American’s managers earn below average for similar positions at other companies.
So, be careful what you ask for, you may get it. Some managers have already left and American’s management has managed to dodge the bankruptcy bullet. The folks at US Airways, United, Northwest, Delta, Independence and other have not been so lucky.
Full story here at the Star Telegram.
