Mar. 17, 2005 - 18:40 MST

THE WONDERING JEW

SO, What's New ?

In today's Rocky Mountain News, back in the Business (Monkey ?) Section is a short article by Chris Walsh and David Milstead of that paper, as follows in part:

UAL pays top executives $1.3 million in bonuses

"United Airlines paid $1.3 million in bonuses to its top five executives last year even as the bankrupt carrier continued to slash employee pay and benefits."

"All but one of the five executives also took home more money in salary than the previous year."

"Last year's payments came from U:nited's "success sharing program," which awards bonuses to all employees if the company meets certain quartely goals. Tague also received money from a "retention and recognition" plan."

"The amounts pale in comparison with executive compensation at most companies United's size. But most companies United's size ARE NOT struggling through bankruptcy, attempting to survive by cutting workers wages. The airline filed for bankruptcy in 2002 and is trying to slash $1.3 billion annually in labor, benefit and pension expenses to emerge from bankruptcy this year."

"United workers complain that executive bonus levels are much higher than the 5 percent that rank-and-file employees can receive. Tilton's bonus last year, for example, amounted to nearly 50 percent of his salary.

In a side bar United bonuses of the execs are shown alongside their salaries.

Glen Tilton, Chairman, president, chief executive officer;

Salary = $756,832, bonus $366,393

Douglas A. Hacker, executive VP of strategy;

Salary $582,000, bonus $150,413

Frederic F. Brace, executive VP and chief financial officer;

Salary $514,000, bonus $173,403

Peter D. McDonald, executive VP and chief operating officer;

Salary $525,998, bonus $177,602

John Tague, executive VP of marketing, sales and revenue:

Salary $541,330, bonus $444,969

+++++++++++++++++++++++++++++++++++++++++++++++++++++

Strong personal opinion of mine follows.

Here is a company which has been trying and in a lot of cases succeeding in cutting wages and benefits as well as failing to pay into their promised pension plan, yet feels it can pay top brass outrageous salaries and bonuses for doing what ? ? ? ? For failing to keep a company profitable ? And Mr. Teague also receiving money from a "retention and recognition" plan . . . . what ? he's not supposed to burp or what ? Recognizing him for not successful marketing, not selling and not raising revenue ? That on top of a bonus ?

I wonder, are these guys taking lessons from the present federal administration or are perhaps giving lessons ?

In my mind there is no, absolutely no justification for high salaries and bonuses on top for people supposedly in charge of a sinking ship. But, seems as if life and crimes of the times continue in high places, SO, What's New ? . . . . . . . . . .

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