Whats in it for the CEO's?

[701EV]

If merger happens, what's in it for the CEOs?

By MATT KEMPNER
The Atlanta Journal-Constitution
Published on: 01/19/08
Keep this in mind: While Delta Air Lines flirts over a possible combination with either United Air Lines or Northwest Airlines, a cargo-load of cash could taxi into the arms of whatever airline chief loses his job in a merger.
Exactly how much a bumped CEO could get depends on a number of factors, including what happens to the price of the airline's stock. But employment agreements and a look at previous company filings with the government offer a rough idea of what the bosses of Delta, United and Northwest might get if they lost their jobs during a "change in control" that leaves their company as the one taken over.

RICK MCKAY/Staff

RAY MALLIN/Bloomberg News



RICHARD ANDERSON
• Job: Chief executive of Delta Air Lines
• Joined company in September 2007.
• Age: 52
• Potential payout: $14.1 million in stock and cash. Delta could spend more to compensate Anderson for extra taxes on the payout. (About half the money includes stock given, with conditions, to compensate for payments he gave up when he left a top post at UnitedHealth Group to work for Delta.)

DOUGLAS STEENLAND
• Job: Chief executive and president of Northwest Airlines
• President since April 2001. CEO since October 2004. Has worked at Northwest since 1991.
• Age: 56
• Potential payout: $7.8 million in cash and benefits (in addition to $4.12 million in present value of pension benefits).

GLENN TILTON
• Job: chairman, president and chief executive of United Air Lines and UAL Corp.
• Joined company in September, 2002.
• Age: 59
• Potential payout: $36.3 million in stock, cash and benefits.

Of course, an airline chief could keep his job in a merger and be rewarded with extra pay for a successful combination.

Sources: Securities and Exchange Commission filings by United and Northwest valuing payments to their CEOs had they lost their jobs at the end of 2006 due to a change in control; analysis of SEC filings by Delta based on current stock price and estimate of salary and incentive package.

With these payout for the CEO's, my bet is someone is going to get merged. The pilot's are going to get screwed!

701EV

 

[CitationUltra]

If merger happens, what's in it for the CEOs?

By MATT KEMPNER
The Atlanta Journal-Constitution
Published on: 01/19/08
Keep this in mind: While Delta Air Lines flirts over a possible combination with either United Air Lines or Northwest Airlines, a cargo-load of cash could taxi into the arms of whatever airline chief loses his job in a merger.
Exactly how much a bumped CEO could get depends on a number of factors, including what happens to the price of the airline's stock. But employment agreements and a look at previous company filings with the government offer a rough idea of what the bosses of Delta, United and Northwest might get if they lost their jobs during a "change in control" that leaves their company as the one taken over.

RICK MCKAY/Staff

RAY MALLIN/Bloomberg News



RICHARD ANDERSON
• Job: Chief executive of Delta Air Lines
• Joined company in September 2007.
• Age: 52
• Potential payout: $14.1 million in stock and cash. Delta could spend more to compensate Anderson for extra taxes on the payout. (About half the money includes stock given, with conditions, to compensate for payments he gave up when he left a top post at UnitedHealth Group to work for Delta.)

DOUGLAS STEENLAND
• Job: Chief executive and president of Northwest Airlines
• President since April 2001. CEO since October 2004. Has worked at Northwest since 1991.
• Age: 56
• Potential payout: $7.8 million in cash and benefits (in addition to $4.12 million in present value of pension benefits).

GLENN TILTON
• Job: chairman, president and chief executive of United Air Lines and UAL Corp.
• Joined company in September, 2002.
• Age: 59
• Potential payout: $36.3 million in stock, cash and benefits.

Of course, an airline chief could keep his job in a merger and be rewarded with extra pay for a successful combination.

Sources: Securities and Exchange Commission filings by United and Northwest valuing payments to their CEOs had they lost their jobs at the end of 2006 due to a change in control; analysis of SEC filings by Delta based on current stock price and estimate of salary and incentive package.

With these payout for the CEO's, my bet is someone is going to get merged. The pilot's are going to get screwed!

701EV

Ya think?

 

[General Lee]

If merger happens, what's in it for the CEOs?

By MATT KEMPNER
The Atlanta Journal-Constitution
Published on: 01/19/08
Keep this in mind: While Delta Air Lines flirts over a possible combination with either United Air Lines or Northwest Airlines, a cargo-load of cash could taxi into the arms of whatever airline chief loses his job in a merger.
Exactly how much a bumped CEO could get depends on a number of factors, including what happens to the price of the airline's stock. But employment agreements and a look at previous company filings with the government offer a rough idea of what the bosses of Delta, United and Northwest might get if they lost their jobs during a "change in control" that leaves their company as the one taken over.

RICK MCKAY/Staff

RAY MALLIN/Bloomberg News



RICHARD ANDERSON
• Job: Chief executive of Delta Air Lines
• Joined company in September 2007.
• Age: 52
• Potential payout: $14.1 million in stock and cash. Delta could spend more to compensate Anderson for extra taxes on the payout. (About half the money includes stock given, with conditions, to compensate for payments he gave up when he left a top post at UnitedHealth Group to work for Delta.)

DOUGLAS STEENLAND
• Job: Chief executive and president of Northwest Airlines
• President since April 2001. CEO since October 2004. Has worked at Northwest since 1991.
• Age: 56
• Potential payout: $7.8 million in cash and benefits (in addition to $4.12 million in present value of pension benefits).

GLENN TILTON
• Job: chairman, president and chief executive of United Air Lines and UAL Corp.
• Joined company in September, 2002.
• Age: 59
• Potential payout: $36.3 million in stock, cash and benefits.

Of course, an airline chief could keep his job in a merger and be rewarded with extra pay for a successful combination.

Sources: Securities and Exchange Commission filings by United and Northwest valuing payments to their CEOs had they lost their jobs at the end of 2006 due to a change in control; analysis of SEC filings by Delta based on current stock price and estimate of salary and incentive package.

With these payout for the CEO's, my bet is someone is going to get merged. The pilot's are going to get screwed!

701EV

You can bet a lot of regional pilots will be screwed, no doubt. Any possible merger will no doubt reduce the need for as much RJ feed. As far as mainline pilots go, we can screw with the merger, so we have some leverage. If the CEOs want the pay, they will have to play.

Bye Bye--General Lee

 

[GuppyWN]

General,

How you gonna screw with a merger? It'll be inked and dry before you even know it's coming. Whattya gonna do infight over seniority? Yeah that'll show 'em.

You have no leverage and you'll like it.

The CEO's all win and win big. They don't care about you or your mortgage. It's just that simple.

Gup

 

[General Lee]

General,

How you gonna screw with a merger? It'll be inked and dry before you even know it's coming. Whattya gonna do infight over seniority? Yeah that'll show 'em.

You have no leverage and you'll like it.

The CEO's all win and win big. They don't care about you or your mortgage. It's just that simple.

Gup

That's funny, we still have merger approval in our contract. We also have a pilot member on our board of directors, so I bet we will know about it prior to anything "going down." Lee Moak is the key, and you need to think about your own future merger coming up. Remember, Gary Kelly said "we won't be left behind." That will be fun too---I bet you can't wait. Your Corndog upgrade is getting longer and longer.(thank your old guys for pushing for age 65 more than anyone else---think how many more LBBs that means for you....ouch) It's just that simple.

Bye Bye--General Lee

 

[DrewBlows]

Your Corndog upgrade is getting longer and longer.(thank your old guys for pushing for age 65 more than anyone else---think how many more LBBs that means for you....ouch) It's just that simple.

Why do you make fun of someone who make more money that you do for flying an airplane half the size of what you fly? How did those retirees who returned (before there was such a thing as age 65) help your upgrade?

 

[GuppyWN]

That's funny, we still have merger approval in our contract. We also have a pilot member on our board of directors, so I bet we will know about it prior to anything "going down." Lee Moak is the key, and you need to think about your own future merger coming up. Remember, Gary Kelly said "we won't be left behind." That will be fun too---I bet you can't wait. Your Corndog upgrade is getting longer and longer.(thank your old guys for pushing for age 65 more than anyone else---think how many more LBBs that means for you....ouch) It's just that simple.

Bye Bye--General Lee

Why do you have to go and make this personal? I was simply saying that the CEO's of Brand X don't care about the pilots or what they want.

I'm a captain so age 65 is relatively meaningless to me.

I don't mind LBB.

Ask the United guys what they got by having a pilot "on the board."

Is your "merger approval" as binding as your "no furlough" clause?

Gup

 

[General Lee]

Why do you make fun of someone who make more money that you do for flying an airplane half the size of what you fly? How did those retirees who returned (before there was such a thing as age 65) help your upgrade?

Are you sure he makes more money than I do? How would you know that? Southwest pay scales are higher, but longevity is different. Does every Southwest pilot make more than every DL pilot? And, any merger will involve a pay raise--or it won't go. Look at NALPA's and DALPA's conditions list. It will bring back some more money.

And which retired guys returned again? Do you mean the below age 60 guys who had to stay until the FAA trained enough Checkairman to cover for them? They are all gone now, and had they not stayed for those 4-6 months, we would have had to park fleets, since 400 pilots per month were ready to give ONE DAY notice to retire for their lump sum. All of them retired, and we kept the 777s. They didn't affect my upgrade at all, and infact helped me because they all retired early. We all know that the Southwest pilots had the majority of voice for the age 65 change, and they now get to continue multiple leg days in guess what? A 737. Good for them.


Bye Bye--General Lee

 

[General Lee]

Why do you have to go and make this personal? I was simply saying that the CEO's of Brand X don't care about the pilots or what they want.

I'm a captain so age 65 is relatively meaningless to me.

I don't mind LBB.

Ask the United guys what they got by having a pilot "on the board."

Is your "merger approval" as binding as your "no furlough" clause?

Gup

Of course it means nothing to you. That is great that you don't mind LBB. You said that we wouldn't know when the merger would happen, yet a board member would have to be notified, right? So, we would know. And the No furlough Clause had a "force Mejeur" clause attached to it. This one does not. We did NOT lose this right in BK. This aint BK, so it is a different arena.

As far as getting personal, your post was certainly that. But hey, that's the way I like it.

Bye Bye--General Lee