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AA Executive Bonuses
Last year, a number of concerned citizens wrote to the U.S. Securities and Exchange Commission (SEC) in support of improved pay disclosure rules. After receiving a record number of comments, the SEC adopted new rules on CEO pay disclosure. Your efforts have helped bring about more transparency to executive compensation. Now that investors know more of the truth about how much their CEOs are being paid, the compensation system needs to be reformed.
Rep. Barney Frank, chairman of the U.S. House Financial Services Committee, has introduced H.R. 1257, “The Shareholder Vote on Executive Compensation Act,” to require that public companies submit executive pay plans to a non-binding shareholder vote. This reform will give shareholders “Say on Pay” at their companies. Giving shareholders a voice in the executive compensation process will encourage boards of directors to consider shareholder interests before approving a questionable compensation plan.
Click here to read the entire bill HR 1257 (pdf 40k)
| Sample Letter for Campaign |
Subject: AA Executive Bonuses
Dear [ Decision Maker ] ,
The news this week that American Airlines' top executives will divide close to $200 million in stock bonuses while employees who are living on reduced salaries since 2003 won't get one additional penny is deeply disturbing. American Airlines is a perfect example of why we need legislation to reign in corporate greed. I urge you to support HR 1257, a bill introduced by Rep. Barney Frank that would provide shareholders with an advisory vote on executive compensation.
American Airlines wouldn't have the share value it does today if ground workers represented by the Transport Workers Union (TWU) had not partnered on a redesign of the airline's repair facilities, boosting efficiency and drastically cutting costs. Through hard work and personal sacrifice, TWU members have generated hundreds of millions in recurring cost savings and more than $100 million in new revenue for the company. Other workers also have shared sacrifices and "pulled together."
This is especially galling when one considers that American's CEO Gerald Arpey promised workers in 2003 "pull together" and we will "share the pain and share in the gain." However, only company officers and managers are beneficiating from American's return to profitability. Workers on the other hand are only feeling the pain.
Giving executives huge cash windfalls while workers live on reduced salaries and benefits is inequitable and not in the best interests of the company, its shareholders, workers or their communities. This is not sharing.
American represents the latest example of a disturbing trend in our society. These are publicly traded companies, shareholders and the public at large are being shortchanged by these cash grabs.
Again, I urge you to take a stand against corporate greed and for a new "American Way." Please support HR 1257.
Sincerely,
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