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THURSDAY MAY 17
AMR Executive Bonus Policy Gets Third Degree At Shareholder Meeting The CEO of American Airlines came under attack by his employees. May 2007The issue: Management bonuses. In 2006 AMR, American Airlines' parent company, saw its first profitable year since 2000. Union leaders said the management made a promise to employees that they'd share the profits as the company recovered. However, AMR's CEO Gerard Arpey stood firm. Meanwhile, the shareholders were not as upset as the union, as the shareholders rejected a union-backed plan that would allow them to vote on executive compensation. The bonuses AMR management received are valued at $160 million, spread over 900 managers. Angry employees confronted the CEO of American Airlines' parent Wednesday over management bonuses, underscoring troubled labor relations at the nation's biggest carrier, but shareholders rejected a union-backed resolution to let shareholders vote on executive compensation. Union leaders said the bonuses broke a management promise to share gains as the company recovered from huge losses. But Chairman and Chief Executive Gerard Arpey declined to back down on the bonuses, which totaled about $160 million in stock for nearly 900 managers. (Continue reading this story on Caller Times)
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