American Airlines dumps executive bonuses

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American Airlines dumps executive bonuses

FORT WORTH, Texas (AP) =97 After sharp criticism from its rank-and-file,=20
American Airlines dropped a plan Friday to award bonuses to top executives=
=20
if they stay at the embattled airline until 2005. The plan had caused an=20
uproar among American employees, who learned of the perks this week as they=
=20
approved wage cuts and other concessions that the company said it needed to=
=20
avoid bankruptcy. ``I have apologized to our union leaders for this and for=
=20
the concern it has caused our employees," chairman and chief executive=20
Donald J. Carty said in a statement. ``Those executives who have made the=20
personal commitment to remain with American during this financial crisis,=20
myself included, are not here solely for monetary reasons and we have all=20
agreed to give up these retention payments in order to give our employees=20
confidence in management's ongoing commitment to shared sacrifice."

The bonuses, equal to twice their salary, were offered to Carty and five=20
other senior executives, and a seventh manager was offered a bonus of 1=20
times salary. Employees complained about the bonuses, which were approved=20
last year but only disclosed this week after union workers voted to cut=20
their own pay 15.6 percent to 23 percent to avoid even deeper cuts and=20
layoffs if American filed for bankruptcy. Chairman and chief executive=20
Donald J. Carty acknowledged that while discussing cost-saving agreements=20
with union leaders he never described the bonus plans. ``I have apologized=
=20
to our union leaders for this and for the concern it has caused our=20
employees," Carty said in a statement issued by the company. ``Those=20
executives who have made the personal commitment to remain with American=20
during this financial crisis, myself included, are not here solely for=20
monetary reasons and we have all agreed to give up these retention payments=
=20
in order to give our employees confidence in management's ongoing=20
commitment to shared sacrifice."


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