Robert Isom, the chief executive of American Airlines, raked in a massive $31.4 million pay check in 2023, according to a new regulatory filing posted by the Fort Worth-based carrier on Thursday.
Isom’s base salary started at just $1.3 million but was then boosted by $15.2 million, which accounts for incentives and other compensation. On top of that, Isom was paid a one-time bonus of $11 million and a second one-time bonus of $3.9 million was paid out in 2023, although earned in 2022.
American Airlines says that less than 9% of Isom’s compensation package is guaranteed and the rest is based on various performance measures that include reliability and profitability, as well as long-term stockholder value.
“The philosophy underlying our overall executive compensation program is to provide an attractive, flexible and market-based compensation program that is both tied to our performance and aligned with the interests of our stockholders,” the airline said in its filing.
“Mr. Isom’s target annual direct compensation is significantly below the last reported value for the CEO of United (2023) and for the CEO of Delta (2022), our two closest peers”.
Iscom took over as CEO at American Airlines in 2022 after veteran executive Doug Parker stepped down from the role. In his final years as CEO, Parker was awarded $7.24 million in 2021 and $10.6 million in 2000 – although this was during the pandemic.
The pay award is likely to raise eyebrows amongst AA’s flight attendant workforce, who are still in federal negotiations in an attempt to reach a new contract. While talks continue, crew members won’t receive a pay raise, and there’s no sign of a breakthrough being made soon.
In the meantime AA sticking the big one to small business travel agencies by changing rules on frequent flyer miles and who can issue their tickets. SHAME SHAME
No respect for the big CEO’S that are mostly greedy. Not all..but most.