FWAAA

Agreed. I've argued for several years now that the executives' Performance Share Plan is not a bonus plan, it's a variable compensation plan, but my arguments have fallen on deaf ears, like zman, who, like wingy, obviously works for AA (and sounds somewhat disgruntled over the executives' paychecks).

I consider a bonus to be money that's above and beyond the negotiated compensation. The PUP/PSP has been a part of the excutives' contracts for more than 10 years.

On the other hand, if the executives voted to give themselves extra money or stock beyond that which their contract guarantees, then I'd consider it a bonus. When AA's stock outperforms, the executives yearly income is larger. When AA's stock performance lags the peer group, their income is much smaller (like it will be this year when the payouts are much, much smaller since AMR was in sixth place out of the seven in the group.

farrish11

If the FAs are so upset by the "performance bonuses" (yes, I understand it's part of management's regularly-scheduled remuneration), why don't the FAs volunteer to sacrifice a good portion of their paychecks in exchange for these same conditional payments, or stock options that could be worthless (or maybe just worth less) if the company isn't profitable?

[rhetorical question... I know they just want guaranteed payments. I'm just sayin'...]

JDiver

The Bloomberg update today states, in part:

"Balloting may be pushed back if the two sides are making progress when the talks near their scheduled conclusion today, said Laura Glading, president of the Association of Professional Flight Attendants. No walkout is imminent."

"The bargaining is set to end tonight, according to the union and the airline, which didn’t a give specific time."

"So-called super mediation is a last-ditch effort to reach agreement before a strike could begin. Before that can happen, the National Mediation Board would have to declare the talks at an impasse. Both sides would then be asked to agree to binding arbitration to reach a contract. If either side declined, a 30- day cooling-off period would be triggered. "

MrMan

Does that include upper management. Compare AA upper management compensation, who is loosing money to say WN who is making money

brp

I agree.AA definitely needs to tighten that money. Loose money is the ruination of that company!

Cheers.

skylady

No agreement has been reached. Another lockdown session will resume 2/27, for 5 days.

Short hair Francis

Care to explain lockdown by any chance, Skylady? Unfortunately, I'll be doing my MR over that weekend, thanks for the help.

LarryJ

The problem is a lack of leadership.

I don't care how much airline executives get paid but management is supposed to lead and motivate their employees. When the form and amount of management compesation does just the opposite then you have a failure of leadership. AA management needs to find a way to win back their employees and motivate them to focus on their jobs instead of management's paycheck. That's where SWA management has always excelled and where most other airline managements have consistantly failed.

classynfun

Conversations about Upper Management "Performance Bonuses" always make me laugh - especially when the people discussing the bonuses do not have direct information about the bonuses. In general, Upper Management contracts guarantee a certain level of "bonus" no matter what the overall performance of the company is. That is the argument for how to get, and retain, top talent at an organization. Now that piece said, any bonus plan that I've seen presented or given by me, or have had, as always been in an almost matrix format. For example, I am individually bonused on 5 different metrics and can get one, all, or a combination of these based on our results. In addition, each time I earn an additional one of the bonuses (ie. Metrics 2, 4, and 5 or 1 and 2, etc.) the percentage I take home increases for each of the metrics. In addition to these metrics and the "package" effect, there are additional kickers that can increase my bonus (5 of these). Overall, my bonus is uncapped, but I have to have an exceptional year and its not easy to pull everything out. It is almost impossible for me to bring nothing home (ie. I have to state I will refuse part or all of my bonus in writing) no matter what happens, but it is very possible for me to multiply my yearly income this way.

All I'm saying, ina very long winded way, is that the Upper Management bonus debate is almost useless no matter what the industry, UNLESS there are open positions and you want the board to offer a different plan to candidates. It really has no impact/reflection on employee union or salary debates.

Now back to your regularly scheduled conversation...

jbart74

All this talk of "performance bonuses" for AA FA's has really gotten my blood boiling. Their performance is the weakest (IMHO of course) of any US based Carrier. They are surly, hurtful, (both emotionally and physically to my shoulders and knees while in aisle seats) and just don't seem to give a damn about me or any of my fellow passengers. Denied water refills on short haul flights, denied blankets (pre 12/25) on cold RJ's and a general lack of compassion seem to be the norm for the past three to four years in my experience of flying them 2 to 4 times per month domestically. I also have a problem for 'performance bonuses' for the idiots who are running this once great airline into the ground. Just like the banks... If you can't turn a profit, you DO NOT deserve a bonus. Pretty simple to me, but maybe I'm just too simple a guy to understand the complexities of multinational business. No, I'm not. I'm quite reasonable and intelligent, actually. I get it. Goodbye AA. It was nice flying you, last decade. This one has been horrible.

JB

AAerSTL

I have had many excellent FAs at American over the years and really believe they are an asset to the company. However, it seems lately the morale has really changed and a lot of the FAs seem very indifferent towards customers and uninterested in providing service.

On a recent BOS-MIA afternoon flight, I had a fairly senior male FA collect meal order on the ground, do one pass of drinks, dump the meal trays and then hung out in the aft galley the entire flight. Unacceptable. I don't know when they will realize in many other industries tenure does not serve in place of performance on the job. As others on FT have said, FAs compensation and retention is overall NOT affected by their performance.

As already receiving 'industry leading pay and benefits' the unions need to wake up to the realities facing the global economy, this industry, and AMR. If they've "Got Guts", do they have guts to go the extra mile? Have guts to accept extra responsibilities?

austin_modern

Oh, I agree - I probably am oversimplifying their job a tad; however, if one isnt a FA any more - exactly what job does their experience qualify them for? The best I could literally come up with was waitress. Im guessing the pay differential between an AA flight attendant, even without bonuses, is probably vastly more than what they would make serving coffee, beer, unopened cans of soda and ice.

Strikes in my mind are about skilled irreplaceable people defending their pay enmass. Im guessing it wouldnt be hard to find willing and train people in this market to do the job of a FA.

JDiver

Buh bye!

I am so glad my experience over the last 60 years with AA has been markedly different than yours - I guess I'll stick with them. (Your experiences sound more like mine on your beloved UA, IMO the Greyhound symbiote in the air, but maybe our mileage has varied because of attitudes, status or ?

"Waiters and waitresses" someone says - uh, huh. Say that three times in the midst of an aircraft emergency, or see if you get the help in your favourite restaurant you need when there's a sudden, catastrophic event (earthquake or fire, for example) or a heart attack. Some of us seem to think the regular training and testing required is so easy - have you done it?

But some perspective for the strike possibilities here - a disruptive strike (1993 cost AA some $300 million) would be a nice shove toward declaring BK and following other airlines that have given up pension benefits to the government plan, dumped contracts and obligations, etc. I suspect FAs and others would be worse off than they are now, even given they have made givebacks to AA.

In the meantime, I would remind would-be strikers that we are still caught in the throes of a recession, and airlines are downsizing even as we post. Communicating the disgruntled feelings toward your boss / airline to the pax by your attitudes or providing minimal service is not the best way to express yourself, IMO. In the end, treating customers right is job #1; that's what takes guts. When that fails to happen, people walk - er, fly the other guys. Airline becomes unhealthier and bleeds more - BK or similar happens. Pretty linear, IMO.

(I'd like to remind those execs who got a "performance bonus" that as well - a bonus for failing? Wow, what a deal!)

ddutil

I agree. In fact, the idea of the AA FAs going on strike makes me wonder whether there would be any noticeable difference in service. I suppose the off duty pilots taking up the first class cabin won't have anybody to flirt and gossip with, but this won't affect the paying customers at all.

Dallas49er

" Sorry that you have to go. You have been a wonderful contestant. But you have won some lovely parting gifts. Tell him what he's won, Johnny Jacobs!"

OBTW-Your experience has not been mine. In all sincerity, enjoy UA.