On Monday following the official completion of the merger between American Airlines and US Airways, in advance of an SEC filing dictation executive pay, new CEO Doug Parker decided to come clean to American Airlines employees in an internal newsletter.
Parker admitted that the new board had granted him nearly 627,000 shares in the new company that are currently worth about $14 million. His full compensation, which Parker has requested be set 15% lower than his peers, will be determined in January by the board of directors in January, which he intends to also fully disclose to employees.
Parker also stated that his pay will be heavily tied to performance – “I will ask that my target compensation be 80-90 percent performance- based pay – pay that could be worthless if we don’t perform (stock grants, annual incentive pay, etc.).”
He added: “But, irrespective of how transparent I am about my compensation, or if it is less than other CEOs, or if it is tied to performance, my compensation is still a significant expense to our Company. With that comes high expectations, and with those expectations comes responsibility. The new leadership team and I understand and accept that responsibility – to our shareholders, to our customers and to each one of you.”
