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Delta awarding CEO $13.6M for closing NWA deal

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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.
 
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.
 
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?
 
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.
 
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
 
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.
 
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
 
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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