another Delta exec leaving...

[captainv]

Delta vice president Colman to retire
New chief financial officer named to replace Burns

By RUSSELL GRANTHAM
The Atlanta Journal-Constitution
Published on: 04/30/04

Delta Air Lines is losing another top official, the fourth of the company's top five to leave in the past six months.

Robert L. Colman, 59, executive vice president of human resources, will retire June 1, the company confirmed in a press release Friday. Colman has been at Delta for six years.

The airline also confirmed the hiring of Michael J. Palumbo, 57, as executive vice president and chief financial officer.

Colman was the architect of the system of voluntary retirements, leaves and departures that accounted for the majority of Delta's job cuts over the past two years.

"Bob Colman built a well-respected and award-winning human resources organization at Delta focused on training, leadership development and performance management," Delta CEO Gerald Grinstein said in a statement.

Palumbo replaces M. Michele Burns, who is leaving the company today.

Palumbo is a longtime finance executive in the airline industry with stints at TWA, Pan Am and Western Airlines, where he worked with Grinstein. He is an consultant with Airline Financial Services, a New York firm. He will join the company May 11.

"He has the experience and the skill to help guide Delta financially through our current difficulties and put us in position to regain profitability," Grinstein said. "He will work with a great finance team at Delta and he will be an important part of my executive team."

Four top executives, including Chief Executive Leo Mullin, and at least six vice presidents have left Delta or announced departure plans after being showered with hefty bonuses in 2002. Some of the executives also had pension benefits prepaid into special trust funds that are protected even if the company declares bankruptcy

 

[rjcap]

Palumbo is a longtime finance executive in the airline industry with stints at TWA, Pan Am and Western Airlines

TWA, Pan Am and Western Airlines.

How many of these airlines are still in business ??

 

[jarhead]

Thank God for those "retention bonuses" for the Delta executives that Leo got through for them. Without that extra money, the top executives might be leaving the company.

Wait a minute............

 

[Ace757]

Palumbo is a longtime finance executive in the airline industry with stints at TWA, Pan Am and Western Airlines

Didnt Western beat pilot concessions out only to sale them to Delta after they got the cuts? I don't like the way this looks at all

 

[AAPilot]

Didn't the current CEO of DAL work for Western Airlines? I believe he was hired to get pilot concessions and left soon after.

 

[satpak77]

another one leaving?

Just wonder what type of departure packages these top people secure (likely via their own lawyers) from DAL corporation?

Wonder how sweet those packages would be if they left post Ch.11 and tried to negotiate something?

hmm

 

[captainv]

another one leaving?

Just wonder what type of departure packages these top people secure (likely via their own lawyers) from DAL corporation?

Wonder how sweet those packages would be if they left post Ch.11 and tried to negotiate something?

hmm

as i recall, the "retention bonuses" that Leo devised were for a two-year period. with Grinstein slashing exec pay and wanting to clean house, is it any surprise they're fleeing? besides, this way if Delta goes down the tubes, Grinstein can just blame it on Leo and his team.

oh, and according to Delta, the execs stayed for two years, therefore the retention bonuses were a success....

 

[satpak77]

ok sounds good

since I am not a rocket scientist, I take the simplistic approach

if "that rental house" on the corner always has a lot of out-flow of tenants, and each time somebody leaves, its to move into another house or for "personal reasons", my West Texas education makes me wonder if something is going on at that house down the street and why those people are leaving

thats just my non-MBA take on things

 

[jarhead]

Kinda like just before a sailing ship begins to sink, the rats know about it first, and are always the first ones to abandon the sinking vessel. Heading down the mooring rope to the safety on shore. An apt analogy????

 

[General Lee]

Jarhead,

Come on man, did you think I wouldn't respond to your slams? I think Grinstein is getting rid of all of Leo's henchmen and starting over. That is a good idea---since the last crew didn't have any new fresh thoughts. They were only thinking of how to line their pockets. Grinstein says he wants people that want to "stay at Delta." I think that is positive. He told a group of us at a meeting in CVG a couple weeks ago that he was cleaning out most of top management.

Bye Bye--General Lee

 

[jarhead]

General

If that is indeed what is happening, I would agree with you that it's probably a "good thing" as Martha Stewart might say. To my knowledge though, I have yet to see any ink about the top five executives being forced out (translation: fired). They all seem to be 'officially' leaving for personal reasons of such euphemisms as 'new challenges', 'more time with family', etc.

Maybe GG has decided to make a clean sweep, and is just allowing these people some face saving as they exit stage left. I thought it was screwy that Michelle Burns would leave the CFO spot, to go to another company that is already in chapter 11--WTF-over?

It just was that on the surface, it seems like everyone running the place are abandoning ship, with their retention bonuses intact. How's that for an oxymoron?

I'm not so sure what the thinking is of a new officer who served with TWA, Western, and Pan Am has to offer with fresher ideas, given the fate of those outfits. I'm not even sure that GG is right for the CEO job, given he's 71 years of age. Mabe he is quick and vibrant, but a job like that I would think requires a lot of physical stamina and mental agility. Maybe he's got it, but most of us slow down a bit with reaching our medicare eligibility. I just look at the U.S. Senate and wonder about the likes of the late Strom Thurmond, or the current Guy from West Virgina, Robert Byrd, who hasn't had a new idea in decades. I hope Grinstein is an exception to that generality, or that he has one helluva sharp staff working on his behalf.

 

[General Lee]

Jarhead,

I have some theories on why our CFO is leaving---and I won't share it here. As far as the new guy---Pulumbo----apparently he has been successful as of late, and did secure the largest order ever at TWA----the 717 order along with other planes at the time. But, the aftermath of TWA was not good---and the downing of that TWA 747 over Long Island didn't help. I think he has "experience"---and I HOPE he has seen what can put you through Chap 11---and he avoids it. Obviously we need some pay cuts to help, and I bet that will happen after we see Grinstein's "plan."

Bye Bye--General Lee