American's Unforced Error

CEO Robert Isom just got a huge payday — and though American says it's because he was underpaid for a few years, insiders have taken notice

Dear readers,

I don't have a problem with CEOs making big money, particularly when their companies make profits. No matter what pilot union leaders may say, these are not easy jobs — they require leadership skills, critical thinking abilities, and analytical acumen beyond what most people possess. And since you can’t win the promotion without besting your friends and colleagues, the typical CEO is also a ruthless bureaucratic infighter, and that is an important trait in a very competitive industry.

I couldn't be a CEO, even if I had spent the last 20 years working at an airline instead of as a journalist. Neither could most of you, though some of you may hope otherwise.

Many subscribers know that already, which could be why most insiders don't care about CEO pay. When I reported for Skift, I wrote an annual story about executive compensation. The public liked those pieces, as they offered an opportunity to be outraged at companies consumers love to hate. But I rarely heard from insiders: They knew why Ed Bastian made almost $15 million in 2018, which was less than the going rate among top-tier CEOs that year, according to the New York Times.¹

But when American's proxy statement came out this week, I heard from a few readers who were aghast that CEO Robert Isom took in $31.4 million in total compensation last year. Interestingly, no one contacted me earlier in the month when United’s proxy showed that Scott Kirby made about $18.6 million last year. Something about Isom’s package touched a nerve.

What’s the difference?

You mean besides about $13 million?