• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

Allied Pilots Association Proposes ''Say on Pay'' Shareholder Resolution, Urges Approval By AMR Stockholders

Posted on: Friday, 20 April 2007, 18:00 CDT

The Allied Pilots Association (APA), representing the 12,000 pilots of American Airlines (NYSE:AMR), announced today that it has proposed a "Say on Pay" resolution for consideration at AMR Corp.'s upcoming annual meeting of stockholders. If approved by the stockholders and adopted by the company, the "Say on Pay" resolution would provide a vehicle for stockholders to voice approval or disapproval of executive compensation on an annual basis.

"APA submitted its 'Say on Pay' resolution as a concerned AMR stockholder," said APA President Captain Ralph Hunter. "This resolution would provide a simple, objective, non-disruptive method for gaining stockholder input into executive compensation without limiting the company in any way."

According to Hunter, if stockholders approve the resolution and in future years find executive compensation to be acceptable, no further action would be necessary. The "Say on Pay" resolution is designed to foster dialog among the AMR Board of Directors, Compensation Committee and the stockholders only when stockholders express concerns. He noted that the resolution is intended to complement newly enacted Securities and Exchange Commission Compensation Discussion and Analysis rules. Under these new rules, executive compensation is more clearly presented and fully detailed in annual proxy statements.

"Upon approval and implementation of our resolution, a future affirmative vote by the stockholders would be a vote of confidence for existing compensation plans and amounts," he said. "Conversely, AMR would not be required to make any changes to existing compensation programs if stockholders were to express concerns, but would be well-advised to discuss the stockholders' concerns. We believe the AMR Board of Directors should embrace this opportunity to gain vital stockholder feedback."

Hunter also pointed out that "Say on Pay" legislation now pending in Congress would, if enacted, be significantly more restrictive and expensive to companies than APA's "Say on Pay" stockholder resolution. In a related development, the U.S. House of Representatives voted today by a margin of 269 for and 134 against to approve HR 1257, "Shareholder Vote on Executive Compensation Act."

"AMR stockholders have the opportunity to show corporate and industry leadership by adopting this resolution," he said. "Self-regulation is always preferable to a legislated mandate."

Founded in 1963, the Allied Pilots Association--the largest independent pilot union in the U.S.--is headquartered in Fort Worth, Texas. APA represents the 12,000 pilots of American Airlines, including 2,799 pilots on furlough. The furloughs began shortly after the September 11, 2001 attacks. Also, several hundred American Airlines pilots are on full-time military leave of absence serving in the armed forces. The union's Web site address is www.alliedpilots.org.

American Airlines is the nation's largest passenger carrier.

Source: Business Wire

More News in this Category