American Airlines’ CEO Forgoes Salary, Will Instead Be Paid in Company Shares

Doug Parker, CEO of American Airlines, has opted to be paid in stock rather than cash.

American Airlines Group CEO Doug Park told airline employees in a letter Wednesday that he has given up his base salary pay and, going forward, he will instead be compensated in company shares.

“I believe this is the right way for my compensation to be set — at risk, based entirely on the results achieved, and in the same currency that our shareholders receive,” Parker wrote in his letter, which American provided FlyerTalk a copy of. “The target amount will remain approximately 20 percent below my peers at Delta and United until all of our team members have joint contracts that compensate as well or better than those airlines.”

Parker’s announcement drew mixed reaction from the airline’s labor leaders.

Allied Pilots Association (APA) spokesman Gregg Overman lauded the CEO, telling Reuters the move “aligns [Parker’s] interests with those of the company’s shareholders.” At the same time, though, Overman chided Parker for not allowing pilots the same opportunity to share in American’s record profits. “We’re disappointed that he has thus far not taken the opportunity to do the same with profit-sharing — another form of performance-based compensation — which serves to align employee interests.”

Parker has been steadfast in resisting calls by unions to allow employees to participate in profit-sharing, Reuters noted, describing it as “an outdated remnant of when airlines could not afford to pay higher, stable wages a decade ago.”

[Photo: American Airlines]