Eagle757shark
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As AirTran lost money, CEO got $1.5 million
By KELLY YAMANOUCHI
The Atlanta Journal-Constitution
Friday, April 03, 2009
AirTran Airways paid its chief executive $1.5 million in compensation for 2008, as the company lost a record amount of money for the year.
AirTran CEO Bob Fornaro’s $500,000 salary was about 16 percent higher last year than in 2007. He was promoted from president and chief operating officer to the airline’s top position in November 2007. Orlando-based AirTran has its largest hub in Atlanta.
After AirTran lost $273.8 million in 2008, its largest annual loss in the company’s history, Fornaro took home a $375,000 bonus. That amounted to 50 percent of Fornaro’s potential award. Fifty percent of the potential bonus was based on profitability, 20 percent on cost control and 30 percent on individual performance.
Fornaro’s 2007 bonus was $545,000. His total 2008 compensation, which also included $526,200 in stock awards and $120,086 in other compensation, was roughly the same amount that Fornaro got in 2007.
AirTran, which tried to cut employee pay last year but was unable to get unions to agree to the move, said officers have not seen an increase in their base pay this year while other AirTran employees have.
The company disclosed the compensation information in its proxy filing to the U.S. Securities and Exchange Commission in advance of its annual meeting in Orlando on May 20. At the meeting, shareholders will vote on a revised long-term incentive plan, among other proposals.
AirTran plans to increase the number of shares for the long-term incentive plan to 6 million, extend the term of the plan to 2019 and change other terms. The company is shifting its long-term equity incentives from time-vesting awards of restricted stock to stock awards based on performance.
By KELLY YAMANOUCHI
The Atlanta Journal-Constitution
Friday, April 03, 2009
AirTran Airways paid its chief executive $1.5 million in compensation for 2008, as the company lost a record amount of money for the year.
AirTran CEO Bob Fornaro’s $500,000 salary was about 16 percent higher last year than in 2007. He was promoted from president and chief operating officer to the airline’s top position in November 2007. Orlando-based AirTran has its largest hub in Atlanta.
After AirTran lost $273.8 million in 2008, its largest annual loss in the company’s history, Fornaro took home a $375,000 bonus. That amounted to 50 percent of Fornaro’s potential award. Fifty percent of the potential bonus was based on profitability, 20 percent on cost control and 30 percent on individual performance.
Fornaro’s 2007 bonus was $545,000. His total 2008 compensation, which also included $526,200 in stock awards and $120,086 in other compensation, was roughly the same amount that Fornaro got in 2007.
AirTran, which tried to cut employee pay last year but was unable to get unions to agree to the move, said officers have not seen an increase in their base pay this year while other AirTran employees have.
The company disclosed the compensation information in its proxy filing to the U.S. Securities and Exchange Commission in advance of its annual meeting in Orlando on May 20. At the meeting, shareholders will vote on a revised long-term incentive plan, among other proposals.
AirTran plans to increase the number of shares for the long-term incentive plan to 6 million, extend the term of the plan to 2019 and change other terms. The company is shifting its long-term equity incentives from time-vesting awards of restricted stock to stock awards based on performance.
