Birdstrike
Atlantic City
- Joined
- Jul 2, 2002
- Posts
- 13,334
Interesting shareholders meeting notes from the AJC. Note Proposal 6 which would:
"...prohibit any pay increase, bonus or benefit increase for any Delta executive or its subsidiaries during any fiscal quarter of unprofitability. The resolution would remain in effect until Delta sustains six consecutive fiscal quarters of profitability...."
When donkeys fly.
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Shareholders question Delta directors on executive pay
Compiled from staff reports
Published on: 04/23/04
Shareholders at Delta Air Lines' annual meeting today wasted no time in getting to controversial issues when the question-and-answer session began.
The first questioner, who said she has been associated with Delta for many years, asked whether certain executives can "look in the mirror" after last year's executive pay controversy.
CEO Gerald Grinstein acknowledged that the controversy, which erupted after Delta spent more than $43 million in 2002 on bonuses and pension trusts for top executives, remains a bitter pill for many employees. Three top executives have since left.
"What we have here is a delicate social contract that has been damaged," said Grinstein, a longtime board member who succeeded Leo Mullin as CEO this winter, adding it "has to be restored."
He said he has told remaining executives that "we are here on a crusade ... to save this company. We will do that and we will make the same sacrifice you make."
Applause for proposal to limit executive pay
Earlier, in another reference to the lingering executive pay controversy, Delta customer service employee Stanley Barczak got a big round of applause when he explained his shareholder proposal to limit executive pay.
About 30 people stood up to clap after he made his speech.
Barczak's "Proposal 6" would prohibit any pay increase, bonus or benefit increase for any Delta executive or its subsidiaries during any fiscal quarter of unprofitability. The resolution would remain in effect until Delta sustains six consecutive fiscal quarters of profitability.
Barczak talked about the need for loyalty to the company and for everyone to make sacrifices.
"It should not take an act of Congress to rein in Delta executive compensation in the midst of the worst economy in decades, and the worst fiscal crisis the airline industry and Delta have ever faced," he wrote in his proposal.
CEO: Frequent fliers 'critical to company'
A few minutes later a shareholder who identified himself as a "4 million miler" in Delta's SkyMiles program questioned Grinstein.
He complained that recent changes and fees have created "a sense of abandonment for your business and frequent fliers" and asked what Grinstein planned to do to improve relations with such customers.
Grinstein said frequent fliers "are critical to the future of the company." He offered no specifics but said Delta must accomplish two tough tasks at the same time: simplifying loyalty programs rather than complicating them while also offering perks that will build the frequent flier base.
About that paint job ...
A retired flight attendant rose to complain about Delta's mix of paint jobs, which resulted from two new paint schemes launched within three years of each other.
Camille Bell said the newest design, with its wavy bands of red and blue across the tail, looks like "a paint job that ran."
The room laughed and a few applauded.
"The world knew our original paint job, they don't know who we are now," Bell said.
Grinstein said paint jobs are important and added he expects the airline to have all planes painted in the new design by next spring. But he said he won't change the design.
"If there's one thing I'm not going to fiddle with now it's the livery of the aircraft," he said.
Grinstein says airline must improve in four key areas
In his prepared remarks, Grinstein said Delta faces four main areas in which it must improve to recover from a financial slump that has produced more than $3 billion in losses since 2001.
He said Delta has to lower costs and address its ballooning debt load. He also said it must "determine a roadmap for the future" and said a strategic review scheduled for completion in late summer will do that. He also said the airline's service image is key.
He made no announcement about filling the chief operating officer post or chief financial officer job, which have been vacated, leaving Grinstein increasingly alone atop the flow chart.
Closing the meeting after the question-and-answer period, Grinstein thanked shareholders for a "good natured and good willed" session.
"We're going to have a very interesting year together before we appear here again," he said, adding he thinks it will be a year that puts the airline "in much better shape."
Results of shareholder proposals were not announced at the meeting. Delta said results would be posted later on its Web site.
A word from the cockpit
Delta captain John Malone, chairman of the union executive committee representing 8,733 Delta pilots, said pilots are willing to take pay cuts but want to see a broader turnaround plan.
"Simply slashing workers' pay and benefits is not a business plan by itself," Malone told the meeting.
Delta has asked the union for a 30 percent cut in wage rates and other concessions. The union is offering a smaller package. The current contract features the industry's highest wages.
Malone said both sides need to work together to come to a compromise.
"The alternative is a lose-lose situation for everyone," Malone said.
In an interview with reporters after the meeting Grinstein said management's position remains firm.
"I believe the number on the table to truly be a minimum number," Grinstein said. "I don't see how we can come down from it."
He also said the amount pilots have offered to give up is inadequate, and suggestions that Delta should just take what it can get and re-negotiate later miss the point of the problem the airline faces.
"You end up with a tin cup on your knees begging again," Grinstein said.
Three planes on display
Delta parked three aircraft near the big windows of the hallway leading to the meeting room.
An employee-owned 767, painted in a one-of-a-kind livery for the company's 75th anniversary, was the largest presence.
Beside it was a gleaming silver DC-3.
And on the grass right outside the window was the company's replica of the 1929 Travel Air, the first aircraft to carry passengers on June 17, 1929 from Dallas to Jackson, Miss.
Perdue opens meeting with congratulations
Delta's first annual meeting in Atlanta since 1995 got under way at 9 a.m. with remarks by Gov. Sonny Perdue delivered on tape.
Perdue praised the airline for its contributions to the area and congratulated Delta on its 75th anniversary.
A flight attendant greeted shareholders as they entered the Renaissance Concourse Hotel Atlanta down the street from Delta's headquarters, saying "Hello" and "Welcome Aboard," as people made their way back to the meeting room.
Mullin, the former CEO who steps down as board chairman today, greeted acquaintances and shook hands as he walked through the lobby.
He had no role in the meeting and was briefly introduced by the new non-executive board chairman, ex-Ford Motor Co. chief John "Jack" Smith.
Smith lauded Mullin for accomplishments such as an expanded route system in Latin America.
Mullin later declined to comment to a reporter and a Delta spokesman said he would not comment on the former CEO's future plans.
'We're gonna lift it up'
As the crowd gathered at the Renaissance Hotel next to Delta headquarters, mechanics handed out copies of a report of Delta's technical operations. Pilots in uniform walked en-masse down the hall towards the meeting room, which was almost full by 8:45 a.m.
Delta estimated there were 900 people in the 1,100-seat hall. Monitors stamped attendee's hands with a small Delta triangle in black ink as they walked into the room.
The meeting started with a video celebrating the company's 75th anniversary and displaying Delta aircraft and employees on two big screens on either side of the stage. A gospel choir on the track sang "The world needs lifting. Who's gonna lift it up? We're gonna lift it up," as images of smiling employees flashed across the screen.
The video got big applause and then the new non-executive chairman of the board, Jack Smith, addressed the room and asked the crowd to be "kind and gentle" with him on his first day as chairman.
The cameras panned over to board members who are not running for re-election, including Mullin who is retiring, and former Atlanta Mayor Andrew Young.
--Compiled by staff writers Mary Lou Pickel, Russell Grantham, Scott Thurston and Chris Kraft. Information from the Associated Press was used in this article.
"...prohibit any pay increase, bonus or benefit increase for any Delta executive or its subsidiaries during any fiscal quarter of unprofitability. The resolution would remain in effect until Delta sustains six consecutive fiscal quarters of profitability...."
When donkeys fly.
-------------------------------------------------------------------------
Shareholders question Delta directors on executive pay
Compiled from staff reports
Published on: 04/23/04
Shareholders at Delta Air Lines' annual meeting today wasted no time in getting to controversial issues when the question-and-answer session began.
The first questioner, who said she has been associated with Delta for many years, asked whether certain executives can "look in the mirror" after last year's executive pay controversy.
CEO Gerald Grinstein acknowledged that the controversy, which erupted after Delta spent more than $43 million in 2002 on bonuses and pension trusts for top executives, remains a bitter pill for many employees. Three top executives have since left.
"What we have here is a delicate social contract that has been damaged," said Grinstein, a longtime board member who succeeded Leo Mullin as CEO this winter, adding it "has to be restored."
He said he has told remaining executives that "we are here on a crusade ... to save this company. We will do that and we will make the same sacrifice you make."
Applause for proposal to limit executive pay
Earlier, in another reference to the lingering executive pay controversy, Delta customer service employee Stanley Barczak got a big round of applause when he explained his shareholder proposal to limit executive pay.
About 30 people stood up to clap after he made his speech.
Barczak's "Proposal 6" would prohibit any pay increase, bonus or benefit increase for any Delta executive or its subsidiaries during any fiscal quarter of unprofitability. The resolution would remain in effect until Delta sustains six consecutive fiscal quarters of profitability.
Barczak talked about the need for loyalty to the company and for everyone to make sacrifices.
"It should not take an act of Congress to rein in Delta executive compensation in the midst of the worst economy in decades, and the worst fiscal crisis the airline industry and Delta have ever faced," he wrote in his proposal.
CEO: Frequent fliers 'critical to company'
A few minutes later a shareholder who identified himself as a "4 million miler" in Delta's SkyMiles program questioned Grinstein.
He complained that recent changes and fees have created "a sense of abandonment for your business and frequent fliers" and asked what Grinstein planned to do to improve relations with such customers.
Grinstein said frequent fliers "are critical to the future of the company." He offered no specifics but said Delta must accomplish two tough tasks at the same time: simplifying loyalty programs rather than complicating them while also offering perks that will build the frequent flier base.
About that paint job ...
A retired flight attendant rose to complain about Delta's mix of paint jobs, which resulted from two new paint schemes launched within three years of each other.
Camille Bell said the newest design, with its wavy bands of red and blue across the tail, looks like "a paint job that ran."
The room laughed and a few applauded.
"The world knew our original paint job, they don't know who we are now," Bell said.
Grinstein said paint jobs are important and added he expects the airline to have all planes painted in the new design by next spring. But he said he won't change the design.
"If there's one thing I'm not going to fiddle with now it's the livery of the aircraft," he said.
Grinstein says airline must improve in four key areas
In his prepared remarks, Grinstein said Delta faces four main areas in which it must improve to recover from a financial slump that has produced more than $3 billion in losses since 2001.
He said Delta has to lower costs and address its ballooning debt load. He also said it must "determine a roadmap for the future" and said a strategic review scheduled for completion in late summer will do that. He also said the airline's service image is key.
He made no announcement about filling the chief operating officer post or chief financial officer job, which have been vacated, leaving Grinstein increasingly alone atop the flow chart.
Closing the meeting after the question-and-answer period, Grinstein thanked shareholders for a "good natured and good willed" session.
"We're going to have a very interesting year together before we appear here again," he said, adding he thinks it will be a year that puts the airline "in much better shape."
Results of shareholder proposals were not announced at the meeting. Delta said results would be posted later on its Web site.
A word from the cockpit
Delta captain John Malone, chairman of the union executive committee representing 8,733 Delta pilots, said pilots are willing to take pay cuts but want to see a broader turnaround plan.
"Simply slashing workers' pay and benefits is not a business plan by itself," Malone told the meeting.
Delta has asked the union for a 30 percent cut in wage rates and other concessions. The union is offering a smaller package. The current contract features the industry's highest wages.
Malone said both sides need to work together to come to a compromise.
"The alternative is a lose-lose situation for everyone," Malone said.
In an interview with reporters after the meeting Grinstein said management's position remains firm.
"I believe the number on the table to truly be a minimum number," Grinstein said. "I don't see how we can come down from it."
He also said the amount pilots have offered to give up is inadequate, and suggestions that Delta should just take what it can get and re-negotiate later miss the point of the problem the airline faces.
"You end up with a tin cup on your knees begging again," Grinstein said.
Three planes on display
Delta parked three aircraft near the big windows of the hallway leading to the meeting room.
An employee-owned 767, painted in a one-of-a-kind livery for the company's 75th anniversary, was the largest presence.
Beside it was a gleaming silver DC-3.
And on the grass right outside the window was the company's replica of the 1929 Travel Air, the first aircraft to carry passengers on June 17, 1929 from Dallas to Jackson, Miss.
Perdue opens meeting with congratulations
Delta's first annual meeting in Atlanta since 1995 got under way at 9 a.m. with remarks by Gov. Sonny Perdue delivered on tape.
Perdue praised the airline for its contributions to the area and congratulated Delta on its 75th anniversary.
A flight attendant greeted shareholders as they entered the Renaissance Concourse Hotel Atlanta down the street from Delta's headquarters, saying "Hello" and "Welcome Aboard," as people made their way back to the meeting room.
Mullin, the former CEO who steps down as board chairman today, greeted acquaintances and shook hands as he walked through the lobby.
He had no role in the meeting and was briefly introduced by the new non-executive board chairman, ex-Ford Motor Co. chief John "Jack" Smith.
Smith lauded Mullin for accomplishments such as an expanded route system in Latin America.
Mullin later declined to comment to a reporter and a Delta spokesman said he would not comment on the former CEO's future plans.
'We're gonna lift it up'
As the crowd gathered at the Renaissance Hotel next to Delta headquarters, mechanics handed out copies of a report of Delta's technical operations. Pilots in uniform walked en-masse down the hall towards the meeting room, which was almost full by 8:45 a.m.
Delta estimated there were 900 people in the 1,100-seat hall. Monitors stamped attendee's hands with a small Delta triangle in black ink as they walked into the room.
The meeting started with a video celebrating the company's 75th anniversary and displaying Delta aircraft and employees on two big screens on either side of the stage. A gospel choir on the track sang "The world needs lifting. Who's gonna lift it up? We're gonna lift it up," as images of smiling employees flashed across the screen.
The video got big applause and then the new non-executive chairman of the board, Jack Smith, addressed the room and asked the crowd to be "kind and gentle" with him on his first day as chairman.
The cameras panned over to board members who are not running for re-election, including Mullin who is retiring, and former Atlanta Mayor Andrew Young.
--Compiled by staff writers Mary Lou Pickel, Russell Grantham, Scott Thurston and Chris Kraft. Information from the Associated Press was used in this article.
