No Executive Pay Plan, No Golden Parachute

CEO Tears Up His Own Executive Contract

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No Executive Contract, No Golden ParachuteCEO Tears Up Executive Contract Becomes At Will Employee

In a move that has drawn both praise and criticism, American Airlines CEO Doug Parker is becoming an ‘at will’ employee, tearing up his own executive contract.

The move, documented by the Securities and Exchange Commission (click to view regulatory filing), means that Parker is no longer guaranteed a set level of compensation and benefits. Likewise, in the event of a change in control at American Airlines, he is not protected or covered by severance provisions.

The action to void his own executive contract, giving up any ‘golden parachute’ is voluntary, and follows on Parker’s decision last May to give up the cash portion of his executive compensation and switch to being paid only in stock.

Read more at: What, no parachute? Why American Airlines CEO Doug Parker is becoming an ‘at will’ employee