deicer Posted April 3, 2003 Share Posted April 3, 2003 This points out why AC needs to get rid of Milton and the need to find someone to work WITH the company and employees. http://www.thestar.com/NASApp/cs/ContentServer?pagename=thestar/Layout/Article_Type1&c=Article&cid=1035780302117&call_pageid=968350072197&col=969048863851 Link to comment Share on other sites More sharing options...
dozerboy Posted April 3, 2003 Share Posted April 3, 2003 For once, the Toronto Star writes a thoughtful and honest article about Air Canada. Link to comment Share on other sites More sharing options...
LongTimer V Posted April 3, 2003 Share Posted April 3, 2003 Maybe Milton is like 90% of the management we have after all.Do as i say not as i do,mentality.It surprises me that he hasn't taken a cut in pay.But nothing should surprises me anymore. Link to comment Share on other sites More sharing options...
Guest GDR Posted April 3, 2003 Share Posted April 3, 2003 What a crock. The article talks about his salary nearly doubling in 1999 the year he took over as CEO. He took over in the latter part of the year so it would be natural that he would have a huge increase. The position of CEO gets a much larger wage than any other. According to inchman on this forum Milton said that as a part of the deal with the unions he would take a 33% cut. He's not quite the news hound that Carty is. The article doesn't mention what Carty's salary is but I'll guarantee it's far in excess of a million bucks. We're all in this mess together including Milton, and we're only going to come out of it by working together. Greg Robinson Link to comment Share on other sites More sharing options...
B75/76 Posted April 3, 2003 Share Posted April 3, 2003 Actually the article does mention Carty's salary. "In a separate release, the company laid out the terms of Carty's new deal. His base salary — $585,813 (U.S.) last year — gets lopped by a third. There will be no bonus, his third consecutive bonus-free year." Link to comment Share on other sites More sharing options...
Guest Fleet80 Posted April 3, 2003 Share Posted April 3, 2003 But what he isn't talking about is the pension improvements he got in lieu of salary - his new plan now gives him 175% of his salary as retirement income for life, plus a bonus payout of 5x base salary on retirement, plus continuation of stock options and SAU's. Hope his employees are so lucky.. (2002 AMR Annual Report) Link to comment Share on other sites More sharing options...
Frosty Posted April 3, 2003 Share Posted April 3, 2003 So all things being the same, should we be looking for Milton to take 33% and no bonus? Even if Milton is not the press hound as GDR says , something of this magnitude would show that he is right there beside his employees , not lookig down on them from afar. Maybe it's time we heard from Olympus! Frosty Link to comment Share on other sites More sharing options...
Guest Virtual Posted April 3, 2003 Share Posted April 3, 2003 True...it lists his 'base'salary. However, I wonder what other 'extras' he has that aren't being accounted for here. It's all those other 'extras' that can really add up to a pretty nice lifestyle, too. Link to comment Share on other sites More sharing options...
dagger Posted April 3, 2003 Share Posted April 3, 2003 I'm sure Don isn't going to starve. During the tech boom, he was on the board of Dell and made $17 million US from his stock options - which he sold before the boom went bust. He made millions from his AMR options in good times - certainly many times more than Milton received, but then again US carriers made bigger profits in those years. A good friend of my is a close buddy of Don's and believe me, Carty still has the big S-Class Mercedes and a ranch house near Dallas almost in the JR Ewing league where he lives with his second wife (plus a country house in Gatineau, near Ottawa). This is not to say that Milton shouldn't take a pay cut. But keep in mind that he's been risk sharing all along. His options from the merger years (the biggest potential part of his bonus back then) are all KAPUT now, so he's actually lost more than any of you. Come to think of it, by avoiding Chapter 11 Carty's options remain intact. Link to comment Share on other sites More sharing options...
Guest GDR Posted April 3, 2003 Share Posted April 3, 2003 Well! That will teach me to post in a hurry. I was on my way out the door and I skimmed the article. Thanks for pointing it out. Other posters including Dagger have done a far better job of dealing with this issue than I could ever hope to do. Link to comment Share on other sites More sharing options...
Guest Airmail Posted April 3, 2003 Share Posted April 3, 2003 Carty took a pay cut AFTER the unions agreed to US$1.3 billion in cost reductions and Milton has already said he'd be willing to do the same as soon as the unions agreed to concessions. What's the difference? Carty also got a pretty sweet deal and this cut only affects his "base" salary. Just look at the AMR Annual Report for more details on what's not in the "base". Finally, Milton did his best to prevent CCAA -- read the Globe and Mail. But the unions did not act and the Board was forced to make a decision. As the saying goes: be careful what you wish for because there isn't a sane investor on the planet who would hand $1 billion (the way GE has) to only have it handed over in turn to unions. The gig is up! Link to comment Share on other sites More sharing options...
Guest kevbert Posted April 3, 2003 Share Posted April 3, 2003 The employees of AC (and the general public) need to stop whining about how "Milton has got to go." What has he done? He didn't cause the economic slowdown, Sept 11, or SARS. Anyone else in charge would have suffered the same fate. People have to realize that AC is a business and therefore exists to make a profit. The "boss" isn't there to win a popularity contest, but rather to ensure the company turns a profit. Just because the company has bankruptcy financing doesn't mean that it's time for pleasantries and wait for the good times to return. Dramatic steps need to be taken to ensure the company returns to profitability. Sure, it is easier to do when people are on side, but when your employees are in effect blocking your ability to make sound business decisions (ie. refusing to allow the company to lay off workers, refusing the change work rules, bidding process, etc. etc. etc), then as a boss you have to take the necessary steps for the business to survive. The unions have to realize this - this isn't a time to complain until you get what you want - actions are being taken to reshape the organization into a profitability entity. You may not agree with the means, but at a certain point the person in charge must take the appropriate steps to reach the needed end. Get involved now or you may find that the boss has decided that he doesn't need you at all. Link to comment Share on other sites More sharing options...
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