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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.
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.
