The head of American Airlines made a big mistake by not properly informing the carrier’s workers of executive compensation plans, he told a hastily called news conference on Monday as unions threatened to vote again on already-ratified concession pacts aimed at staving off imminent bankruptcy.

Sadly, this information was not a big secret. It has to be disclosed on quarterly public filings. The 1933 and 1934 securities acts require this. Ironically, these acts were passed in response to the depression and the ignorant public’s view of accounting information. The average Joe doesn’t quite understand financial information and these acts were passed to protect them.

Now, I can see why the workers may not have known, but the union should have. They do employ financial guys.

Posted in uncategorized on April 22nd, 2003 by SayUncle | RSS 2.0 |