DALLAS (AP) — The CEO of the new American Airlines says he will get a salary of $700,000 this year and could get a bonus of twice that if the company is highly profitable.
But Doug Parker says the majority of his compensation will come in the form of a stock award that hasn't been determined yet.
Based on past compensation for Parker and other airline CEOs, those stock awards are likely to be valued at several million dollars. Separately, last month Parker received a retention bonus of stock that, at Monday's closing share price, could be worth $18.9 million if certain merger goals are met by late 2016.
Parker told employees Monday that his 2014 compensation would be less than that paid to CEOs at United Airlines and Delta Air Lines, which are roughly the same size as American after its merger with US Airways. He said that he requested the lower payout because union employees at the company are paid less than their counterparts at those airlines.
The board of American Airlines Group Inc. considered Parker's salary and bonuses at its first meeting last week, he said. Parker was the CEO at US Airway — with a $550,000 salary — and took on the same job at the combined company when the merger closed in December.
In a special memo to employees on Monday, Parker said his target total compensation would be about 20 percent below that of the United and Delta CEOs and more than 90 percent of it would be based on performance, "meaning that if American doesn't do well, it could be worth nothing."