Delta's Retention Program isn't working

[altimaklr]

Here's the story...

 

[Timebuilder]

In the world of business, it takes big money to keep key executives. In this case, perhaps not enough money.

 

[altimaklr]

In Delta's case, it was about $1.8 million per employee.... if that's not good enough, what is?

 

[Timebuilder]

Just watch where they go for your answer.

Is this another "class warfare" post???

This reminds me of the hurt feelings I had when I was a young radio announcer. As an "on air personality" I was one of a dozen or so people that actually put the station on the air. I was the literal voice of the station when I was on duty. My pay, and those of the other jocks, was the LOWEST of any at the station, except for the part-time secretary. It was the account executives, the "salesmen" and their bosses who made the real cash. Note that this was the number one rock station in the fifth largest market in America.

As pilots, we may feel that WE alone should get the big bucks, but that is NEVER the case in the business world. The big cash goes to the overseers, the deal makers, the "movers and shakers".

As long as there is an oversupply of pilots, pilot wages will descend even further in a competitive environment. Expereinced executives, on the other hand, those with top level experience at major corporations, are harder to come by (and retain) and command not aircraft, but high salaries and benefits.

So, if you want the big money, transfer out of your flight program and work hard to get into the Harvard, Penn, or NYU business school.

Then, call me to fly your airplane. I could use a job.

 

[jarhead]

I am having a "disconnect" with something in this report of Delta executives bailing out with the money that was designed to keep them on board. Would it have not been possible to design the program, so that leaving Delta prior to some date(pick it), that the money would be forfeited?

On the other hand, I find nothing wrong with the stockholders of any company, through their elected board of directors, to establish compensation packages to keep top talent from leaving the stable. On the other hand, perhaps with the billions of $$$ in losses going down the toilet, I can't see that these current crop of executives are worth much at all. I believe I could lose money just as fast, for a fraction of the dough these guys are being paid. Maybe they need a "new broom to sweep clean", instead of hanging on to folks who can't run it for a profit. Some airlines are managing to do it.....why can't Delta?

 

[NYRANGERS]

I am having a "disconnect" with something in this report of Delta executives bailing out with the money that was designed to keep them on board. Would it have been not been possible to design the program, so that leaving Delta prior to some date(pick it), that the money would be forfeited?

Yes they could have. All management did was find a tricky way to issue bonuses under the guise of pensions and a retention program. For any of these crooks to get "their" money, they just have to make a request for it and they get the check three days later.

There was a pretty good segment on CNBC about this (this morning). It was the first time I have seen a reporter and AJC reporter claim they understand why our union is asking for protections before concessions.

Fly safe,

NYR

Kind of funny how just a few months ago when M. Burns was asked about this she said........"oh, thats old news"...........as if that was some kind of defense.

 

[Timebuilder]

On the other hand, perhaps with the billions of $$$ in losses going down the toilet, I can't see that these current crop of executives are worth much at all. I believe I could lose money just as fast, for a fraction of the dough these guys are being paid.

The reason that guys like this have to be employed instead of you and I is that these guys are recognized "players" in the business community, and you and I are not. Had I stayed in the NYU business school instead of switching over to the School of Arts, I might be one of those players now. No thanks.

These recognized players are a necessity for banks, creditors, and vendors to work with Delta during these hard times. You and I might be able to arrange a meeting with these people, but conversation would certainly reveal that we had no known track record of guiding a major corporation, and we would not be extended the same arrangements that these known, experienced players would receive.

Maybe they need a "new broom to sweep clean", instead of hanging on to folks who can't run it for a profit. Some airlines are managing to do it.....why can't Delta?

Most likely: costs vs revenue.

 

[Timebuilder]

All management did was find a tricky way to issue bonuses under the guise of pensions and a retention program. For any of these crooks to get "their" money, they just have to make a request for it and they get the check three days later.

This is where the board of directors in particular and the stockholders in general need to exercise their ultimate authority, as the "ownwers" of the corporation. While we can call something "sneaky", we have to remember that everything that happens at a company has someone who is responsible for it's execution. When poor judgement or illegal accounting are discovered, executives need to be brought up to either give a full explanation or face justice.

If you are a Delta stockholder on any level, this is your opportunity to make yourself heard, both through letters and the annual meeting. YOU, as a stockholder, are an authority to be reckoned with, and it is up to YOU to bring pressure when you feel that something wrong is afoot.

 

[surfnole]

I don't think Delta will have any problems finding willing and able takers for their jobs. This sounds more like a sweetheart deal for the Delta mgmt.

Isn't this the same mgmt that lost hundreds of millions of dollars on the Comair strike? They could have given the pilots at Comair everything they wanted and still saved a ton of money.

 

[jarhead]

surfnole

What? Do you mean to infer that it was not the Comair Management that was pulling all the strings during the strike?
You think it was not Randy and Seibs conducting that symphony?
I am stunned!