American Airlines CEO Opts For All-Stock Compensation
American Airlines chief executive officer Doug Parker has shifted his salary to an all-stock compensation package, telling employees and shareholders he believes it’s the right thing to do.
The announcement came via a letter Parker sent following a proxy filing by the airline that showed Parker made $12.3 million in salary, stock and other compensation in 2014.
Stocks and bonuses are typically the largest part of a CEO’s compensation package. Only 40 percent of Parker’s 2014 compensation was in cash.
Voluntarily moving to an all-stock salary is a sign to investors and shareholders that the company is not only doing well, but that its CEO believes it will continue to do well on into the future. Facebook founder and CEO Mark Zuckerberg, for instance, draws only a $1 annual salary.
"I believe this is the right way for my compensation to be set — at risk, based entirely on the results achieved, and in the same currency that our shareholders receive," Parker wrote.
American, like many domestic carriers, had a banner financial year in 2014. The company turned a record $2.9 billion in profit and stock price soared 112 percent.
The change in Parker’s compensation package begins immediately, the airline said.
More by Rich Thomaselli
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