Jan. 27--American Airlines chief executive Doug Parker told employees he will earn $700,000 in salary this year although he could receive more in bonuses and stock if the carrier performs financially.
"The compensation plan our Board approved last week has my target total compensation approximately 20 percent below my peers at Delta and United and it is over 90 percent performance-based," Parker said in a letter sent to employees on Monday. Parker took over the position of CEO after his carrier, US Airways, merged with American in December.
He added that his annual salary is well below the average airline CEO's pay of $850,000. But his base salary is almost 30 percent higher than the $550,000 he earned at US Airways in 2012. That year, he received a total of $5.5 million in stock and cash for his executive compensation.
If American earns $2.5 billion in pre-tax profit in 2014, Parker will receive a short-term incentive bonus. The long-term incentives which include possible stock options and awards are still being worked out by the company's board of directors.
Andrea Ahles, 817-390-7631 Twitter: @Sky_Talk
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