FORT WORTH, Texas - Responding to a challenge from American Airlines Chairman and CEO Donald Carty, the senior executives and all other officers of American and senior officers of American Eagle have accepted voluntary pay cuts of varying percentages, the airline announced today.
Earlier this week, in a message to employees addressing the severe financial crisis that confronts American and the rest of the industry in the wake of the Sept. 11 tragedies, Carty said he would forgo any personal compensation, including salary, for the rest of this year as a way of helping American overcome the crisis.
In the same message, Carty announced a program that will give management and all other non-union employees of the company the opportunity to help in the crisis by accepting voluntary pay reductions in amounts of their choosing. Details will be provided to employees shortly, and a special Web site will be created to allow them to enroll. The company also will approach its unions about participation by their members.
Under the program, 20 cents of every dollar in salaries saved will be donated to a special fund American has created to provide for the educational needs of the children of American Airlines employees killed in the Sept. 11 events. This fund will also provide help for unique hardship cases that might arise from impending job reductions.
“I’m proud of the way our executive management team has responded so quickly and decisively to the n eed to reduce salaries,” Carty said. “This sets a compelling example for the rest of the company and gets our program off to an excellent start.”