Siegel: Proposal on airline exec pay would reward the overpaid WASHINGTON (AP) =97 Executive compensation in the airline industry deserves= =20 scrutiny, but a congressional proposal to freeze pay would merely reward=20 those who are already overpaid, US Airways president David Siegel said=20 Thursday. In his remarks, Siegel singled out Leo F. Mullin =97 chief=20 executive of US Airways rival Delta Air Lines =97 as an executive whose pay= =20 package is excessive. Mullin received nearly $13 million in cash and stock= =20 options in 2002, at a time when the company laid off more than 10,000=20 workers. Siegel, who joined US Airways in March 2002, received $1.4=20 million. His stock options became worthless when his company filed for=20 bankruptcy. Delta, the nation's third-largest carrier, and US Airways, the= =20 seventh-largest, are fierce competitors in the eastern United States.=20 Siegel in the past has claimed Delta has engaged in predatory business=20 practices and last year jokingly referred to Mullin as "Dr. Evil." In response to widespread criticism, Mullin said Thursday he would reduce=20 his yearly salary 15% to $596,000 and forego incentive and retention pay=20 that he could have earned this year. The airline industry, which has=20 struggled since the Sept. 11 attacks and fared even worse since the war=20 with Iraq, has been seeking congressional aid. House and Senate committees= =20 have passed relief packages in the $3 billion range, but require freezing=20 executives' pay at 2002 levels as a condition for the aid. Siegel, asked=20 about the issue at a speech to the American Bar Association's forum on=20 aviation law, said pay freezes profits those who have already reaped=20 excessive pay, and harms executives like himself, who took a 20% pay cut=20 while the company went through bankruptcy. "There has to be a fair=20 marketplace for management compensation. The only thing more expensive than= =20 good management is bad management. But I think there is appropriate=20 scrutiny on some individuals. I won't mention any names," he said, pausing= =20 briefly before naming Mullin. Last month, Mullin took a 10% pay cut to his $795,000 base salary. He also= =20 forfeited nearly $200,000 in salary in the final three months of 2001 to=20 emphasize his commitment to cutting costs, according to the company's proxy= =20 statement. Siegel agreed last year to a 20% cut to his $750,000 base salary. The pay=20 cut will remain in effect for several years, although he is entitled to=20 bonuses and stock options. But some airline employees, who collectively=20 agreed to $1 billion a year in pay and benefit cuts, were angry that=20 management will receive an 8% share in the reorganized airline and that $35= =20 million in bonuses were paid to three outgoing executives. Siegel said the= =20 congressional aid is badly needed, with airline security costs "strangling= =20 this industry." US Airways emerged from bankruptcy on Monday and received=20 $1.24 billion in financing to help implement its restructuring plan. That=20 money means "we can weather this crisis better than most of the other=20 airlines," Siegel said. *************************************************** The owner of Roger's Trinbago Site/TnTisland.com Roj (Roger James) escape email mailto:ejames@xxxxxxxxx Trinbago site: www.tntisland.com Carib Brass Ctn site www.tntisland.com/caribbeanbrassconnection/ Steel Expressions www.mts.net/~ejames/se/ Site of the Week:http://www.ttsailing.org/ TnT Webdirectory: http://search.co.tt *********************************************************