Business

AA CEO paid no salary -- but still earned $11.1 million in 2016

AP

American Airlines chief executive Doug Parker earned $11.1 million last year, even though he did not accept a salary from the Fort Worth-based carrier.

Instead, Parker was given $11 million in stock awards and $140,763 in other compensation such as flight benefits and life insurance premium payments, according to American’s proxy statement filed with the Securities and Exchange Commission on Monday.

Parker’s 2016 compensation was 2.4 percent lower than what he earned in 2015, when the board changed his compensation to only stock awards.

President Robert Isom earned $6.5 million in 2016, a 6.2 percent uptick, receiving $641,306 in salary and $4.6 million in stock awards. Isom took over the president’s role after Scott Kirby left American to become president of United Airlines in August. Kirby earned $9.4 million, including a $3.85 million cash severance payment.

In 2016, American reported solid profits of $2.68 billion on revenues of $40.18 billion. Its top executives receive stock awards for meeting various performance goals instead of receiving cash bonuses or stock options.

The proxy was filed just days after American announced it would give its pilots and flight attendants raises of 8 percent and 5 percent on average, respectively, even though the labor groups are in the middle of existing contracts.In a letter sent to employees, Parker said the pay hikes were “the right thing” to do to bring their compensation in line with pay hikes at rivals Delta Air Lines and United Airlines.

American also announced it will hold its annual shareholders meeting on June 14 in New York.

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