Welcome to Flightinfo.com

  • Register now and join the discussion
  • Friendliest aviation Ccmmunity on the web
  • Modern site for PC's, Phones, Tablets - no 3rd party apps required
  • Ask questions, help others, promote aviation
  • Share the passion for aviation
  • Invite everyone to Flightinfo.com and let's have fun

"Top execs at Delta given stock shares: Rank and file, however, got buyout offers"

Welcome to Flightinfo.com

  • Register now and join the discussion
  • Modern secure site, no 3rd party apps required
  • Invite your friends
  • Share the passion of aviation
  • Friendliest aviation community on the web

Voice Of Reason

Reading Is Fundamental !
Joined
Sep 21, 2004
Posts
1,369
"Top execs at Delta given stock shares: Rank and file, however, got buyout offers"

Wow--you guys must be doing even better than they are telling you to afford this:

"Top execs at Delta given stock shares

Rank and file, however, got buyout offers

By Kelly Yamanouchi
The Atlanta Journal-Constitution
Thursday, February 19, 2009
Delta Air Lines last month gave hundreds of thousands of shares of its stock to executives as part of a long-term incentive plan, while it was also offering buyouts to employees to shrink its work force and adjust to weaker demand for travel.
Delta distributed 398,560 shares to Delta Chief Executive Richard Anderson; 181,160 shares to President Edward Bastian; and tens of thousands of shares each to executives Mike Campbell, Mike Becker, Steve Gorman, Hank Halter, Glen Hauenstein and Richard Hirst.
The shares are restricted, and the executives can sell or transfer half of them Feb. 1, 2010, or later and the other half Feb. 1, 2011, or later, if those executives are still employed by Delta.
Because of those restrictions it’s unclear how much the stock grants will be worth. But based on Delta’s closing stock price Tuesday, the shares distributed to Anderson in January would be worth about $2.3 million and Bastian’s would be worth close to $1 million. Delta’s shares closed at $5.71 Wednesday, down 10 percent, and have fallen about 66 percent in the last year.
Meanwhile, Delta did not pay out any profit sharing to employees or annual cash bonuses under its management incentive plan because it reported an $8.9 billion loss last year. Most of the loss was from restructuring and other charges.

But the airline did give pay raises across the company effective Jan. 1. “Delta continues to invest in all employees across all levels through merger equity grants, pay raises, performance incentives, retirement plan contributions” and the pay increases, said Delta spokesman Kent Landers.
The stock distributions are annual grants under Delta’s 2009 long-term incentive plan, which the company expects to detail in its proxy to be filed in 2010.
The stock grants are essentially retention incentives, part of the board’s philosophy to “place a substantial portion of leaders’ pay at risk over time,” which is tied to the long-term performance of the company, Landers said. They pay out based on how long executives work for the company, and because they are issued in stock their value depends on Delta’s stock price. But the amount of stock awarded is not based on past performance.
During bankruptcy, Delta cut employee pay and did not offer a long-term incentive program to executives. But the company developed a new compensation system when it emerged from bankruptcy. Executives and all other employees received stock when Delta exited bankruptcy in 2007 and when the company completed its merger with Northwest Airlines last year.
Joseph Tiberi, a spokesman for the International Association of Machinists, which represents baggage handlers, customer service agents, reservations agents and others from Northwest, said “the tolerance for such compensation in today’s environment is wearing thin.”
“Congress is mandating that executives who take advantage of federal bailout money have to limit their compensation, and Delta executives who have taken money from employees in bankruptcy should be doing the same,” Tiberi said.
Delta’s incentives also include a program called “Shared Rewards” for employees below the director level. Those incentives at Delta pay up to $100 per month based on baggage handling performance, flight cancellation and delay rates. "




Find this article at:
http://www.ajc.com/services/content/printedition/2009/02/19/deltapay0219.html
 
Didn't I read that there were NO buyout offers for your combined pilot group? Are there ANY plans to do so?
"2,100 want Delta buyout

By Kelly Yamanouchi
The Atlanta Journal-Constitution
Thursday, February 19, 2009
Delta Air Lines said more than 2,100 employees have signed up to take buyouts as the company seeks to reduce its work force.
Delta said in an internal update to its employees Wednesday that the next step is to determine how the number of volunteers meets the company’s needs, based on its schedule for the fall and into 2010. Delta plans to cut its flight capacity by 6 percent to 8 percent this year.
“We will be thoughtful, yet decisive, in managing through this global recession,” said Delta’s vice president of talent diversity and field human resources Cynthia Per-Lee in the message to employees Wednesday. “In the end, we have to have the right size airplanes in the right markets to match the number of customers who want to buy tickets, and we have to have the right number of people to serve those customers.”
The company has not yet said whether it will also need to lay off employees. Delta chief executive Richard Anderson said in January that he expected about 2,000 employees to take the buyouts. Delta, which merged with Eagan, Minn.-based Northwest Airlines last fall, has about 75,000 employees. Buyouts of 2,100 would amount to about 2.8 percent of employees.
The window for employees to sign up for the voluntary severance and early-out programs closed last week.
Last year, Delta cut more than 4,000 employees through buyouts."

spacer.gif


Find this article at:
http://www.ajc.com/services/content/business/stories/2009/02/19/buyouts0219.html
 
Pilots were excluded from even applying for buyouts.

But WHY? Are you overstaffed? They are coming up with a great plan?... Or just plan to start laying off without bothering? What are you guys being TOLD????

ALSO-- how to they intend to handle the onslaught of pilots needing training for all of those that were (allegedly) "displaced" and supposed to be online in their new aircrafts in a couple months? Are they really putting all those guys through at once? Sounded like a lot are supposed to be ready to go in their displaced planes very soon? That's a lot of training at once, right?

 
Last edited:
They did not want to offer a buy out for a lot of reasons. 1) It really makes not difference with those with a pension if they are given 10 more years or not. It is the same either way.
2) We may in fact be short staffed mid 2010. There are no plans to furlough. We still have jets coming that need to be staffed.
 
They did not want to offer a buy out for a lot of reasons. 1) It really makes not difference with those with a pension if they are given 10 more years or not. It is the same either way.
2) We may in fact be short staffed mid 2010. There are no plans to furlough. We still have jets coming that need to be staffed.

I hope that's true! Ramp up that NW/DL hiring machine!
...so does that mean they really ARE going to have ALLLLL those displaced people at once through training and in position in a month or two?
 
Last edited:
I hope that's true! Ramp up that NW/DL hiring machine!
...so does that mean they really ARE going to have ALLLLL those displaced people at once through training and in position in a month or two?


All of those displaced people? It doesnt all happen at one time. Training is spread out over months. Some got displaced before others and thus will go to training before others. Pretty standard in the 121 world. Like ACL said, we will likely be short people before we are fat on people, thus why mgmt excluded pilots from applying for early out packages. Could change tomorrow but that's what is foreseen as of now.
 
All of those displaced people? It doesnt all happen at one time. Training is spread out over months. Some got displaced before others and thus will go to training before others. Pretty standard in the 121 world. Like ACL said, we will likely be short people before we are fat on people, thus why mgmt excluded pilots from applying for early out packages. Could change tomorrow but that's what is foreseen as of now.

Hmm, well last month either here or ALPC someone posted pretty significant displacement #s (from the NW side alone I remember) they said were for pilots to be ONLINE in that displaced equip in MAY. Is that wrong?

( to clarify: I was not inferring just fNW side displaced...There were equally significant reports or #s posted for fDL side as well, I just remember the MAY post referred to the fNW side)
 
Last edited:
I hope that's true! Ramp up that NW/DL hiring machine!
...so does that mean they really ARE going to have ALLLLL those displaced people at once through training and in position in a month or two?

Everyone is slated to be trained by June. Just in time for a possible reinstatement. We have a lot of heavy lift coming in the next year and a half. We have even more than what has been announced. There is a good amount of narrow body lift just around the corner too. Once we start to take off after we are past SOC, I think most airlines and people are going to be blow away. It looks good on paper.
It was stated that the first two to three years would be difficult as we grew and shrank as we merged, after that we would be unstoppable.
 

Latest resources

Back
Top