Delta Execs say "We get NO bonus..." article

[General Lee]

UPDATE 1-Delta execs say no change to '09 base pay

Wed Apr 29, 2009 5:28pm EDT


ATLANTA, April 29 (Reuters) - Delta Air Lines Inc's chief executive and president said on Wednesday that their base pay did not change in 2008 and will not change this year.
In a memo to employees filed with the U.S. Securities and Exchange Commission, the executives at the world's biggest airline also said they did not earn a bonus for last year.
In the memo, coming ahead of the carrier's annual proxy filing expected on Thursday, CEO Richard Anderson and President Ed Bastian said that outside of base pay and benefits, about 85 percent of their ongoing compensation was based on Delta's stock increasing over time, and paying profit-sharing to employees.
"For example, since Delta was not profitable in 2008 and you did not receive a profit-sharing payment, we did not earn a bonus under the annual cash incentive plan," the executives said in the memo.
Still, the executives noted that the proxy will report special stock awards tied to the carrier's emergence from bankruptcy in 2007 and the merger with Northwest last year. The memo said "awards for us and the rest of the executive team were restricted and had no immediate value to us." They did not give details on the size of the special stock awards.
The memo added that 2008 take-home pay was $2.5 million for Anderson and $5.2 million for Bastian. It noted that the take-home pay amounts included cash and benefits plus the value of vested stock. (Reporting by Karen Jacobs; editing by Carol Bishopric)



Looks like they still did well on take home pay, but could have had more I guess.


Bye Bye--General Lee

 

[Truckdriver]

They don't need a bonus when they make $2.5 million and $5.2 million. That's like winning the lottery for the average American and that is just one years worth of salary. Their long term stock options are worth even more.

If I were on a corporate board I would suggest that when the company post losses for the year, all executives get paid 1.5X what the highest paid non-executive employee was paid that year. When the company makes money, I have no problem with executives making money. Next year I hope Delta makes a billion dollars and both Richard and Ed get twice what they got this year.

 

[crj567]

I would like to volunteer to trade pay for a year or two with any of those execs! I get bonuses in my present job now!!! They could keep my entire bonus, hell-I would even throw in my car if I could trade base pay ( I would even do this deal for 1/3 base pay!!)

-I like truckdriver's idea. Performance-based pay would be awesome!! RA and Steenland wouldn't last a freaking week under such a system, though. Kinda hard to make an airline perform well with such poor decisions time after time after time....

-BTW-How is Africa doing these days, Gen? Making money like the mint still-yep?? Just as long as those LBB bucks keep rolling in, you all should be making a profit any day now.

 

[Rez O. Lewshun]

Glenn Tilton’s Pay Increased Nearly 20 Percent

Late Friday night United released its proxy statement including detail of executive pay for 2008. Tilton received $1.7 million for the 2008 year, an increase of 19.2 percent over his compensation for 2007. Tilton’s base pay remained at $850,000 for the year, but his ”incentive” bonus was increased from $422,425 for 2007 to $695,640 for 2008. An additional $157,057 in compensation including retirement contributions and other items rounds the total out to a cool $1.7 million. In addition, United adopted a new bonus program that awarded Tilton 275,000 restricted stock units and options on 400,000 shares. The award begins vesting in less than a year on
April 1, 2010.

 

[Tanker Clown]

Did the CEO of Song get a bonus? With the damage that Song did to Air Tran and JetBlue, there's no way that the CEO didn't get tens of millions in bonus cash.

 

[ACL65PILOT]

Remember that these guys were paid a lot more two years ago, add to it that at least half of this goes to taxes.
IMHO it is not that bad.

 

[koko nw]

Remember that these guys were paid a lot more two years ago, add to it that at least half of this goes to taxes.
IMHO it is not that bad.

Your kidding right? please tell me you are.

Weren't you paid ALOT more a couple years back also?
And who gives a dog doodoo how much taxes these schmo's pay. Are you worried they won't have enough to eat with?

 

[ACL65PILOT]

Your kidding right? please tell me you are.

Weren't you paid ALOT more a couple years back also?
And who gives a dog doodoo how much taxes these schmo's pay. Are you worried they won't have enough to eat with?

Not at all, but 3-5 mil a year is actually not a lot considering we are a 40-45 billion dollar a year company.
Companies with revenues in that range generally can triple executive compensation from those levels. That was the point.
And his pay was a lot more last year. I will give you a hint, add 10 mill to it.

 

[MINIME]

The gesture is still good. In this world of corporate greed, it's nice to see atleast something of the nature.

I'm sure that if they wanted to, i.e. Tilton, they could've taken alot more.

 

[Vastly Underemp]

Remember that these guys were paid a lot more two years ago, add to it that at least half of this goes to taxes.
IMHO it is not that bad.

Just an FYI, standard senior executive comp packages generally include an income tax "true up" these days. I'd bet the figure you're seeing is take home.

 

[Scope out RJ's]

I would like to volunteer to trade pay for a year or two with any of those execs!

I bet you would fry boy!

I get bonuses in my present job now!!! They could keep my entire bonus,

Stealing french fries out of the fryer isn't exactly collecting a bonus, but hey, whatever floats your boat!

hell-I would even throw in my car if I could trade base pay ( I would even do this deal for 1/3 base pay!!)

But then where would you live?:laugh:

I like truckdriver's idea. Performance-based pay would be awesome!! RA and Steenland wouldn't last a freaking week under such a system, though. Kinda hard to make an airline perform well with such poor decisions time after time after time....

So then, how much would you make for every order of fries you serve?

BTW-How is Africa doing these days, Gen? Making money like the mint still-yep??

You have an obsession with Africa? Maybe we could ship you there, one way, and you could tell everyone over there just how smart you are, but choose to stay as a regional f/o on the might crj because you're trying to, ehem, humble yourself!:laugh:

Just as long as those LBB bucks keep rolling in, you all should be making a profit any day now.

Isn't it time to throw another quarter in the meter? BTW, you're trailer is double parked!

 

[Motown]

Just an FYI, standard senior executive comp packages generally include an income tax "true up" these days. I'd bet the figure you're seeing is take home.

It says so in the memo:

The memo added that 2008 take-home pay was $2.5 million for Anderson and $5.2 million for Bastian.

 

[koko nw]

Not at all, but 3-5 mil a year is actually not a lot considering we are a 40-45 billion dollar a year company.
Companies with revenues in that range generally can triple executive compensation from those levels. That was the point.
And his pay was a lot more last year. I will give you a hint, add 10 mill to it.

Thanks for your civil rebuttal.
I would venture a guess that most of those CEO's in that revenue bandwidth you speak of also turn a profit in order to add 10 mill to your CEO's pay, present economic malaise aside.

Cool it's your company, we'll just have to agree to disagree.

Take care

Koko

 

[scarlet]

These people should be ashamed of themselves.

Just wait till they announce big job cuts and pilot furloughs, and cut staff from every dept. Don't worry 330.00 a week is max unemploy. in GA.

Americans WILL eventually get tired of these people and take matters into our own hands. We run these companies !!!

We will take control of the companies again and THE GOVT> and stop being push overs!!

 

[Tanker Clown]

The government should take over Delta. They'd probably lose less money if the crooks running Delta were gone.

I don't really see what the big deal would be. The government and Delta seem to both be nonprofits.

 

[Cobra17]

UPDATE 1-Delta execs say no change to '09 base pay



Looks like they still did well on take home pay, but could have had more I guess.


Bye Bye--General Lee

It's about time someone defended management. Hey Genital, how is Steenland in the sack anyways?

 

[HomerJ]

The people doing your fuel hedging deserve the big money, that's obvious...

 

[crj567]

Remember that these guys were paid a lot more two years ago, add to it that at least half of this goes to taxes.
IMHO it is not that bad.

WOW-

We have switched to FUNNELING that Kool-Aid, haven't we?

-You are so in the tank, there is no point in trying to get you to see the reality of the situation. These guys are plundering your company and getting very wealthy doing it!
-The tax consequences of such a situation should be the last of your concern!!

 

[Monster Buck]

WOW-

We have switched to FUNNELING that Kool-Aid, haven't we?

-You are so in the tank, there is no point in trying to get you to see the reality of the situation. These guys are plundering your company and getting very wealthy doing it!
-The tax consequences of such a situation should be the last of your concern!!

Always remember your words that I have highlighted here junior, worry about your airline and not ours. You are not us and from the way you speak you never will be. I am glad that you distance yourself from us. Off to JFK with you!

This post is for crj567 only.

 

[ACL65PILOT]

It is not drinking the Kool-Aid bud.
He gets paid a lot. No doubt about it.
My point was that for other sized corporations he is paid quite low.
One of his former UHC execs just retired at 50! Has a nice home in Naples to retire to.
Good guy, but paid a lot more. Might go down and play a round with him too!