American Airlines chief executive Doug Parker earned $12.3 million in executive compensation in 2014 as the Fort Worth-based carrier reported record earnings.
According to the carrier’s proxy filed on Wednesday with the Securities and Exchange Commission, Parker received $687,884 for his base salary and received $7 million in stock awards and $4.2 million in cash incentives. His total compensation was 41 percent less than the $20.9 million he received in 2013 which included a substantial bonus for the merger of American and US Airways.
Parker also announced he will no longer receive an annual cash salary or participate in the company’s cash incentive program going forward. Instead, he will be paid only with American stock [ticker: AAL].
“This stock will have to be earned over time, and will also have to be earned by performance,” Parker said in a letter sent to employees on Wednesday.
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The stock has almost doubled in price since American and US Airways merged in December 2013 and was recently added to the S&P 500. Shares closed at $51.40, up 8 cents on the NASDAQ market on Wednesday.
The company’s four other highest-paid employees also had significant drops in their compensation in 2014 as the previous year had reflected one-time bonuses and stock awards related to the merger.
American said it plans to hold its annual shareholder meeting on June 3 in New York.