Former AAR CEO - one of the good guys

[TwinTownBisonFan]

AAR filed bankruptcy recently - the CEO resigned as a result. He did so without any kind of parachute, and took only his stock options - which are virtually worthless - saying he deserved nothing more, citing going bankrupt as "failing" at his job.

What's remarkable to me is that his story is actually remarkable somehow... it's sad that someone bothering to do the right thing is now newsworthy...

http://www.startribune.com/opinion/othe ... page=1&c=y

[dbackjon]

That is cool...


He split with his employer of 30 years out of a belief that bankruptcy was morally wrong, and that he could not, in good conscience, lead an organization that followed this familiar path.

[AZGrizFan]

For a long time, Arpey voiced his opposition to bankruptcy, but the airline struggled because of it. "Our bankrupt colleagues all made net profits, good net profits last year, and we didn't," Arpey told me a few months ago.

"And you can mathematically pinpoint that to termination of pensions, termination of retiree medical benefits, changes of work rules, changes in the labor contracts. That puts a lot of pressure on our company, not to be ignored."
Over the last eight years, I have interviewed hundreds of senior executives for a major academic study on leadership, including six airline CEO's.

Arpey stood out among the 550 people I talked with not because he believed that business had a moral dimension, but because of his firm conviction that the CEO must carefully attend to those considerations, even if doing so blunts financial success or negates organizational expediency.

For him, it is an obligation that goes with the corner office.

Arpey and AAR have been playing on an unlevel playing field for almost 10 years, and it finally jumped up and bit them in the ass. Ironically, he might be an example of a CEO who actually has EARNED some form of exit compensation given his moral stance...

[TwinTownBisonFan]

For a long time, Arpey voiced his opposition to bankruptcy, but the airline struggled because of it. "Our bankrupt colleagues all made net profits, good net profits last year, and we didn't," Arpey told me a few months ago.

"And you can mathematically pinpoint that to termination of pensions, termination of retiree medical benefits, changes of work rules, changes in the labor contracts. That puts a lot of pressure on our company, not to be ignored."
Over the last eight years, I have interviewed hundreds of senior executives for a major academic study on leadership, including six airline CEO's.

Arpey stood out among the 550 people I talked with not because he believed that business had a moral dimension, but because of his firm conviction that the CEO must carefully attend to those considerations, even if doing so blunts financial success or negates organizational expediency.

For him, it is an obligation that goes with the corner office.

Arpey and AAR have been playing on an unlevel playing field for almost 10 years, and it finally jumped up and bit them in the ass. Ironically, he might be an example of a CEO who actually has EARNED some form of exit compensation given his moral stance...

I would agree - the guy believed they had a moral obligation to keep their word - even when it isn't the easy way out...

[Ivytalk]

Well, AAR recognizes that bankruptcy is the only way to bust the union contracts that raise its labor costs. The pilots' union reluctantly acknowledged that. Not the first company -- or the first industry -- that's seen that happen. Arpey did the right thing. He'll land on his feet. And by the way, the author of the piece is head of Gordon College, a conservative Christian school.

[AZGrizFan]

Well, AAR recognizes that bankruptcy is the only way to bust the union contracts that raise its labor costs. The pilots' union reluctantly acknowledged that. Not the first company -- or the first industry -- that's seen that happen. Arpey did the right thing. He'll land on his feet. And by the way, the author of the piece is head of Gordon College, a conservative Christian school.

I hope so. Guys like him are rare in ANY industry.