FORT WORTH- According to a recent regulatory filing released by American Airlines (AA), Robert Isom, the chief executive, received a substantial compensation package totaling $31.4 million in 2023.
Isom’s base salary initially stood at $1.3 million, but this figure was significantly augmented by $15.2 million in incentives and other forms of compensation. Additionally, he received a one-time bonus of $11 million and another one-time bonus of $3.9 million, although the latter was earned in 2022 but paid out in 2023.
American Airlines CEO Pay
American Airlines clarifies that less than 9% of Isom’s compensation is guaranteed, with the remainder contingent upon various performance metrics such as reliability, profitability, and long-term shareholder value.
“The fundamental principle guiding our executive compensation program is to establish an appealing, adaptable, and market-aligned structure that is intricately linked to our performance and mirrors the interests of our shareholders,” stated the airline in its filing.
“Mr. Isom’s target annual direct compensation falls notably below the most recent reported figures for the CEOs of United (2023) and Delta (2022), our two closest competitors.”
Isom assumed the CEO role at American Airlines in 2022 following the departure of veteran executive Doug Parker. During Parker’s final years as CEO, he received $7.24 million in 2021 and $10.6 million in 2020, despite the pandemic.
The substantial pay package will likely draw attention from American Airlines’ flight attendant workforce, which is currently engaged in federal negotiations to secure a new contract.
While discussions are ongoing, crew members are not slated to receive a pay increase, with little indication of an imminent breakthrough.
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