American Airlines chief gives up cash salary for stock

http://www.bbc.co.uk/news/business-32425938

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American Airlines chief executive Doug Parker has joined a select group of company bosses opting to be paid entirely in shares.

He has decided to give up the cash portion of his salary and annual bonus.

Mr Parker was paid more than $12m last year, 40% of which was in cash, according to regulatory filings.

Facebook chief Mark Zuckerberg, Google's Larry Page and Kinder Morgan's Rich Kinder are also paid solely in shares.

"I believe this is the right way for my compensation to be set -- at risk, based entirely on the results achieved, and in the same currency that our shareholders receive," Mr Parker said in a letter to employees.

Under the new deal, 54% of his payout will tied to performance targets.

The 53 year-old industry veteran has helped transform American Airlines into one of the country's most successful companies.

Shares of American Airlines have more than doubled in value since the company merged with rival US Airways in 2013.

Both carriers had undergone bankruptcy but their combination has since created the world's largest airline company based on passenger traffic.

American Airlines also posted a record profit of $2.9bn last year, helped by cheaper fuel prices and reduced competition.