Bad service pays

Check this out.... US Airways pays

Two facts. Number one: The latest Airline Quality Rating (PDF download) finds that US Airways ranks dead last, when it comes to customer service. No surprise, considering the tumultuous past year in which it was assimilated into America West as it withered away on life support.

Number two: US Airways Chief Executive Officer Doug Parker's compensation package totaled $5.68 million last year (in fairness, he did turn down a $770,000 bonus). Hmmm. Most people are on a litttle less than that! That's more than four times the $1.25 million total he earned in 2004, according to reports.

wow that's discipline for you...

If you're thinking that something is wrong with this picture, you're probably not alone. Something is very wrong with it.

yep.

And go and read all the comments on my open letter to Douglas, aka Doug. It beggars belief.

My question, what is the role of a CEO in today;s world, why should he be so well compensated with such an appalling track record. Why is the wall silent, when they could turn each crisis into an opportunity?

As we say... Engage or Die

Comments

[Stuart Oliver]

Alan,
Interesting blog...I'd like to put forward another view, not because I feel the need to defend the CEO salary or agree with it but because a "devils advocate" type thought occurred to me when I read your post.

So, we've got a company performing badly - very badly. And a CEO being compensated well - very well.
Are we comparing like with like? I'm not sure we are.
Many will doubt the value of the CEO to a company that performs badly but one could speculate that without the CEO the company would have performed much worse and, furthermore, that he was the best guy to be the CEO in this situation.

For me, a better comparison that encompasses both company performance and absolute salary would be to take the performance of other airlines and the salary of their respective CEO. If the profit is ten times that of US Airways and the CEOs salary is ten times that of Doug's then one could argue that Doug's is on track.

Just a thought...

The cynical, or perhaps humorous, might say I'm simply paving the way to be an airlines Chief Exec, mess it all up, and retire a happy man...;)

[Alan moore]

hi Stuart,

Your point is valid and well made.

However US Airways is an ongoing topic on this blog, if you read about the personal defeat, and frustration people have experienced with US Airways and they are not the only one, it expands upon a broader canvas of accountability.

Thanks for posting and good luck with the Airline CEO job hunting :-)

Alan

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