2 US Airways Execs Opt Out of Bonus Plan

CHARLOTTE, N.C. — US Airways Group’s top two executives on Wednesday said they would forgo millions of dollars in future bonuses as a conciliatory gesture amid protracted contract talks with the airline’s flight attendants.

Chairman Stephen Wolf told shareholders at the airline’s annual meeting here that he and President Rakesh Gangwal have opted out of a newly approved bonus plan.

Wolf and Gangwal, under fire from union workers for stock options granted last year valued at $17.7 million and $20.8 million, respectively, said they would not accept additional bonuses that could have more than doubled their base pay.

Under the long-term executive incentive plan approved overwhelmingly by the airline’s shareholders, Wolf and Gangwal would have been eligible for bonuses up to 220% of their annual salaries--$580,000 and $566,538 last year, respectively.

Wolf and Gangwal, however, are not relinquishing their long-term stock options. Wolf’s cumulative exercisable options at year-end were valued at $47.8 million.

About 150 flight attendants protested outside the downtown Hilton hotel before the meeting. During the meeting, they confronted Wolf about the slow progress of talks on their new contract and rising executive pay at the airline.

The airline and flight attendants union are now in federal mediation, but union officials said talks were at an impasse.

Wolf said the airline remained committed to its proposal of a contract based on industry parity plus 1%.