Pay hike for US Airways boss Parker

US Airways CEO Doug Parker earned $5.5 million in 2012 - up from $3.8 million in 2011 - the airline disclosed in a Securities and Exchange Commission filing after the stock market closed Monday.

In a message to employees explaining his compensation, Parker broke out the pay areas. His base salary remained $550,000 which he said has not increased since he became CEO of America West Airline in 2001. Parker noted other network airline competitors have not yet disclosed their 2012 compensation but their 2011 salaries averaged $730,00.

US Airways is the dominant airline at Philadelphia International Airport. It plans to merge with American Airlines, with Parker at the helm of the combined company, which will take the American name.

Parker said he received $1.1 million in an annual incentive payment, based on 2012 as a "record setting year" for US Airways operationally and financially. In addition, he received a long-term investment payout of $1.1 million based on the airline's No. 1 stock rank among peers for a three-year period. US Airways was No. 1 in shareholder return among All Fortune 500 companies in 2012, the SEC filing said.

Parker, in the memo to employees, said the largest component of his compensation was a stock grant of $2.7 million, which was the same as in 2011. It is available over the next 3 years as it vests, and he will receive value in the future from the stock awards if the company is successful.

Adding it all up, Parker said, his total reported compensation for 2012 was $5.5 million, about half in cash. Parker said this is higher than the $3.8 million he earned in 2011 "due to our very strong 2012 earnings and stock price performance, which led to maximum annual and long-term incentive payments." He noted that the largest network carriers have not yet disclosed 2012 compensation, and in 2011, CEOs of Delta and United averaged $11.8 million in compensation, Parker said.