Citizens United To Reform Bankruptcy Laws Blog

Friday, January 07, 2005

David N. Seigel, President and CEO US Airways Group

When a corporation files for bankruptcy, the foremost point in assessing the corporations financial status should be the evaluation of the CEO's compensation plan.
Before employees of a corporation benefits are axed, the CEO compensation structure should be the first source of financial relief.
The US Airways Group President and CEO, David N. Siegel was compensated nearly $9 million in fiscal year 2003. His compensation package provides for some financial relief and, should be cut and the money doled out to creditors. The current method it seems places all of the responsibility on the lower tiered workers, however.
How many workers could be supported by Siegel's pay package? This may surprise you:

8 Nobel prize winners
26 average university presidents
22 U.S. presidents
39 AFL-CIO presidents
83 Chairmen of the Joint Chiefs of Staff
352 average workers
839 minimum-wage earners

All of these workers could be paid for one year at Siegel's rate of pay!!

What is more surprising is how long it would take these workers to earn in a lifetime the compensation of Siegel's annual income.

A Nobel prize winner would have to work until 2011 A.D.
An average university president would have to work until 2029 A.D.
The President of the United States would have to work until 2025 A.D.
AFL-CIO President John Sweeney would have to work until 2042 A.D.
The Chairman of the Joint Chiefs of Staff would have to work until 2086 A.D.
An average worker would have to work until 2355 A.D.
A minimum-wage earner would have to work until 2842 A.D.

How Many Years to Equal David N. Siegel's 2003 Compensation?

Minimum-Wage Worker 839 years Completion Date 2842 A.D.
Average Worker 352 years Completion Date 2355 A.D.
President of the U.S.A. 44 years Completion Date 2047 A.D.

What leads to gross negligence and waste is the very compensation that is not observed.
We must reform bankruptcy laws now, in order, to protect what we, as workers, have earned so far and what, our retirees are losing everyday.

Another union contract voided by bankruptcy

US court lets US Airways void labor contract, drop pensions

US Airways Group, scrambling to avoid liquidation, said a bankruptcy judge granted its request to void the labor contract between the airline and the union representing its mechanics.

The judge also let US Airways terminate the pension plans covering its flight attendants and mechanics, as well as a frozen plan that covered 28,000 retirees. (MORE >>>)