Delta awarding CEO $13.6M for closing NWA deal

Twotter Driver

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AP
Delta awarding CEO $13.6M for closing NWA deal
Monday November 3, 2:59 pm ET
By Joshua Freed, AP Airlines Writer Delta Air Lines CEO to get $13.6 million in stock awards; rank-and-file get shares, too
MINNEAPOLIS (AP) -- Delta Air Lines CEO Richard Anderson will get stock awards worth almost $13.6 million beginning next year for closing the carrier's buyout of Northwest Airlines, according to new filings.
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if(window.yzq_d==null)window.yzq_d=new Object();window.yzq_d['qIx_ANG_fzQ-']='&U=13f9nrk7h%2fN%3dqIx_ANG_fzQ-%2fC%3d674272.13012005.13219519.1435155%2fD%3dLREC%2fB%3d5405003%2fV%3d1';Employees of Delta Air Lines Inc., including their new coworkers from Northwest, are also getting stock.
Atlanta-based Delta had said previously it would hand out about 15 percent of its shares to various employees, including almost 10 percent to the rank-and-file. Another 3.5 percent is going to about 700 officers, directors, and managers.
The filings with the Securities and Exchange Commission late Friday were the first disclosure of who would get what:
-- Anderson will get 760,000 restricted shares, worth almost $8.6 million based on Delta's share price at midday Monday.
-- He also gets options on 1.52 million shares at an exercise price of $7.99 per share -- Delta Air Lines Inc.'s closing share price on Wednesday, just before the Northwest deal closed. With Delta shares trading at $11.28 at midday Monday, those options could give him a profit of $5 million if they could be exercised right away. However, Anderson has to stay with Delta to get the shares and options, with the first 20 percent vesting on May 1, 2009, and the last 40 percent vesting on Nov. 1, 2011.
-- Delta President Ed Bastian, who is also running Northwest now, will get restricted shares worth $5.3 million and options worth a profit of almost $3.1 million based on Monday's share price. His awards vest on the same schedule as Anderson's.
-- Delta pilots are getting about 5.9 percent of the company's shares, with other Delta workers getting a total of about 4 percent. Workers will get their shares on Tuesday and can trade them right away, Delta spokeswoman Betsy Talton said. She said a worker who makes $40,000 a year would get $6,100 worth of shares before taxes, if the shares were trading at $11 each.
"Delta stands behind its promise that its people will directly participate in and benefit from the growth and future success of the combined company. Consistent with our compensation philosophy, stock grants to top management will be at risk and their value tied to the company's performance over time," Talton said.
Northwest also disclosed late Friday that it paid outgoing chief executive Doug Steenland $495,000 in cash because shares he was promised when the Delta buyout was announced April 14 lost value between then and when it closed on Wednesday.
Steenland's 375,000 "restricted retention units" would have been worth $4.2 million based on Northwest's share price when they were promised. But Northwest shares traded for the last time on Wednesday at $9.90 -- so the cash payment to Steenland made up the difference. Delta closed its stock-swap acquisition of Northwest on Wednesday. It's now operating Northwest as a subsidiary, but plans to adopt the Delta brand across the whole operation over the next two years.
 

whatitdoing?

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Like this was a suprise.
 

IXLR8

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I'm shocked really......
 

Choppy

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don't go to the pilots looking for some cash now!!
 

BigShow

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Hell...at least they are restricted!!!!! He better work to keep the value!
 

Flybet3

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AP
Delta awarding CEO $13.6M for closing NWA deal
Monday November 3, 2:59 pm ET
By Joshua Freed, AP Airlines Writer Delta Air Lines CEO to get $13.6 million in stock awards; rank-and-file get shares, too
MINNEAPOLIS (AP) -- Delta Air Lines CEO Richard Anderson will get stock awards worth almost $13.6 million beginning next year for closing the carrier's buyout of Northwest Airlines, according to new filings.
[SIZE=-2]ADVERTISEMENT[/SIZE]
if(window.yzq_d==null)window.yzq_d=new Object();window.yzq_d['qIx_ANG_fzQ-']='&U=13f9nrk7h%2fN%3dqIx_ANG_fzQ-%2fC%3d674272.13012005.13219519.1435155%2fD%3dLREC%2fB%3d5405003%2fV%3d1';Employees of Delta Air Lines Inc., including their new coworkers from Northwest, are also getting stock.
Atlanta-based Delta had said previously it would hand out about 15 percent of its shares to various employees, including almost 10 percent to the rank-and-file. Another 3.5 percent is going to about 700 officers, directors, and managers.
The filings with the Securities and Exchange Commission late Friday were the first disclosure of who would get what:
-- Anderson will get 760,000 restricted shares, worth almost $8.6 million based on Delta's share price at midday Monday.
-- He also gets options on 1.52 million shares at an exercise price of $7.99 per share -- Delta Air Lines Inc.'s closing share price on Wednesday, just before the Northwest deal closed. With Delta shares trading at $11.28 at midday Monday, those options could give him a profit of $5 million if they could be exercised right away. However, Anderson has to stay with Delta to get the shares and options, with the first 20 percent vesting on May 1, 2009, and the last 40 percent vesting on Nov. 1, 2011.
-- Delta President Ed Bastian, who is also running Northwest now, will get restricted shares worth $5.3 million and options worth a profit of almost $3.1 million based on Monday's share price. His awards vest on the same schedule as Anderson's.
-- Delta pilots are getting about 5.9 percent of the company's shares, with other Delta workers getting a total of about 4 percent. Workers will get their shares on Tuesday and can trade them right away, Delta spokeswoman Betsy Talton said. She said a worker who makes $40,000 a year would get $6,100 worth of shares before taxes, if the shares were trading at $11 each.
"Delta stands behind its promise that its people will directly participate in and benefit from the growth and future success of the combined company. Consistent with our compensation philosophy, stock grants to top management will be at risk and their value tied to the company's performance over time," Talton said.
Northwest also disclosed late Friday that it paid outgoing chief executive Doug Steenland $495,000 in cash because shares he was promised when the Delta buyout was announced April 14 lost value between then and when it closed on Wednesday.
Steenland's 375,000 "restricted retention units" would have been worth $4.2 million based on Northwest's share price when they were promised. But Northwest shares traded for the last time on Wednesday at $9.90 -- so the cash payment to Steenland made up the difference. Delta closed its stock-swap acquisition of Northwest on Wednesday. It's now operating Northwest as a subsidiary, but plans to adopt the Delta brand across the whole operation over the next two years.
And this is why we are #1 in the world.
The rich get richer.
 

DrewBlows

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Atlanta-based Delta had said previously it would hand out about 15 percent of its shares to various employees, including almost 10 percent to the rank-and-file. Another 3.5 percent is going to about 700 officers, directors, and managers.
So, 75,000 people get to share 10% of the company, while 700 people get to share 3.5%. A little quick math shows the managers and officers get 0.005% each while the employees get...hmmm...my calculator can't display a decimal that long...
 

whatitdoing?

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Unfortunately, I believe massive furloughs are coming with this deal. Anderson and his idiots were trying to get everyone on board. Now that they've got it, there's his compensation, and now.....who cares? He's got his money, they got the merger, and they'll be trimming big time. Good luck......
 

jetjock6

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NEWS HEADLINE
NOVEMBER 4, 2008 1810ET

Atlanta: Delta Airlines announces Tuesday that they will need $13.6 million in concessions from employees due to added expenses associated with NWA merger. Delta CEO says that without concessions operations will cease.
 

Superpilot92

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Leaders receive stock awards, Richard waives accelerated stock
While most Delta employees are making decisions about their stock awards announced today, about 700 officers, directors and other leaders received restricted shares and stock options that will take three years to vest fully.
Our merger also triggered the accelerated vesting of earlier unvested stock awards to leaders granted after our emergence from bankruptcy. Richard Anderson, however, waived the right to any acceleration of his stock awards.
Having these awards for management “at risk” is in keeping with our overall philosophy on compensation where the level of performance-based compensation rises with the level of responsibility.
For Richard, more than 90% of his annual targeted compensation is at risk.
 

Sedona16

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Does anybody know how the Pilots stock will be paid out yet.....will it be requied to go directly to retirement or can it be received and sold directly?
 

ACL65PILOT

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It goes directly in to your retirement accounts.
Read the MEC publication on it. Reference the ALPA page. It spells out very clearly how many shares and where it is going, and why.
Now you can borrow against your 401K with penalties if you want to.
 

Champ42272

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The real question about the stock payouts to the pilots is the total value of the company. I have not seen a estimated value, since the Delta pilots are supposed to receive 3.5% of the new Delta. I do know the expected revenue of the new company was estimated to be over $35B.

Most pilots are going to average about 4000 shares in the new company, but at what stock price?

If anyone has any information on this I would like to know.

Just my opinion, I could be wrong.

Champ 42272
 

Bert Harbenson

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The real question about the stock payouts to the pilots is the total value of the company. I have not seen a estimated value, since the Delta pilots are supposed to receive 3.5% of the new Delta. I do know the expected revenue of the new company was estimated to be over $35B.

Most pilots are going to average about 4000 shares in the new company, but at what stock price?

If anyone has any information on this I would like to know.

Just my opinion, I could be wrong.

Champ 42272
ALPA has hired an outside financial firm to sell the shares as it sees fit to maximize value. As I understand it is the same company they used to sell the BK claim. They may sell it all at once, or more likely in blocks when they think the market is favorable. Only when all the stock is gone will we know the value of the share, then that money will be distruibuted into our 401k's. Any excess over the IRS yearly limit will be paid in cash. If the firm cannot sell all of the stock at a "good" price we will just get the leftover shares of DAL placed into our 401k to do with what we wish.

So to get an estimate of an individual's take multiply the number of shares (about 3400-4000 depending on senority) by whatever price you think the stock will sell at.
 

hmmurdock

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ALPA has hired an outside financial firm to sell the shares as it sees fit to maximize value. As I understand it is the same company they used to sell the BK claim. They may sell it all at once, or more likely in blocks when they think the market is favorable. Only when all the stock is gone will we know the value of the share, then that money will be distruibuted into our 401k's. Any excess over the IRS yearly limit will be paid in cash. If the firm cannot sell all of the stock at a "good" price we will just get the leftover shares of DAL placed into our 401k to do with what we wish.

So to get an estimate of an individual's take multiply the number of shares (about 3400-4000 depending on senority) by whatever price you think the stock will sell at.
Greetings. Does anyone know the max amount the company can put in the account. In other words, will we likely see the leftover as extra on a future paycheck.

Thanks
 

Champ42272

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For 2009 I believe it is $47,000. Anything over that would be paid to the pilot, minus taxes.

Just my opinion, I could be wrong.

Champa42272
 
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