Spanjiers is licking his chops on this one...
Bankruptcy profiteering, force employee paycuts, and now the touch of management "incentives."
uke:
Mesaba execs may split $1M in incentives
Bonuses depend on emerging successfully from bankruptcy
BY SHERYL JEAN
Pioneer Press
Mesaba Airlines' top five officers could share more than $1 million in incentive pay when the regional carrier emerges from bankruptcy, according to a disclosure statement filed Wednesday in court as part of its reorganization plan.
The incentives come a month after Mesaba employees took pay and other cuts totaling 15.8 percent over four years, or possibly longer.
"Nothing in the bankruptcy process has been fair or equitable," said Tom Wychor, chairman of the pilots union at Mesaba. "As we stated many times in court, management did not sign on for the same terms or duration as the employees who make Mesaba fly."
Mesaba spokeswoman Elizabeth Costello said the incentive pay "is an effort to acknowledge their commitment to the company, and their efforts in securing the core business and positioning the company for growth." Mesaba's senior executives "took a cut in their base salaries and declined to take an incentive payout in August 2006," she said.
Mesaba President John Spanjers makes below the industry average: His 2006 total compensation was $193,900 versus 2005 total compensation of $575,661 for Philip Trenary, CEO of rival Pinnacle Airlines, based in Memphis, Tenn., Costello said.
Both Mesaba and Pinnacle fly regional routes for Northwest Airlines. Mesaba flies 50 regional aircraft, connecting passengers from smaller cities to Northwest's airport hubs in Detroit, the Twin Cities and Memphis.
Under Mesaba's incentive plan, Spanjers would reap the biggest bonus — $308,348; William Poerstel, vice president of flight operations, would receive $212,282; and three other vice presidents would receive amounts ranging from $188,843 to $189,904.
The executives must see Mesaba through its bankruptcy process to receive the money, which also is contingent on the management and repayment of the unsecured creditors' claims as soon as possible, Costello said.
Mesaba on Monday filed its reorganization plan, which details Mesaba's sale to Northwest Airlines in exchange for $145 million in claims in Northwest's separate bankruptcy case. Mesaba's creditors committee expects that amount to cover all claims and possibly interest. Mesaba and the committee said in the disclosure statement that the plan allows for a larger repayment than if the company was liquidated.
The disclosure statement revealed that Mesaba will continue to lease its headquarters building in Eagan and that its four directors, including Spanjers, will step down once the company emerges from bankruptcy this spring and becomes a subsidiary of Northwest.
However, other corporate details, such as whether the top officials stay, if there will be any job cuts and the makeup of Mesaba's fleet, remain unclear. Mesaba will iron out such details in the next 60 to 90 days, Costello said.
Mesaba posted a loss of $9 million on revenue of $154.6 million for the six months ended Sept. 30, 2006, according to the statement. Its cash on hand fell to $7.7 million versus $20.7 million as of March 31, 2006.
http://www.twincities.com/mld/pioneerpress/16538524.htm
Bankruptcy profiteering, force employee paycuts, and now the touch of management "incentives."
uke:Mesaba execs may split $1M in incentives
Bonuses depend on emerging successfully from bankruptcy
BY SHERYL JEAN
Pioneer Press
Mesaba Airlines' top five officers could share more than $1 million in incentive pay when the regional carrier emerges from bankruptcy, according to a disclosure statement filed Wednesday in court as part of its reorganization plan.
The incentives come a month after Mesaba employees took pay and other cuts totaling 15.8 percent over four years, or possibly longer.
"Nothing in the bankruptcy process has been fair or equitable," said Tom Wychor, chairman of the pilots union at Mesaba. "As we stated many times in court, management did not sign on for the same terms or duration as the employees who make Mesaba fly."
Mesaba spokeswoman Elizabeth Costello said the incentive pay "is an effort to acknowledge their commitment to the company, and their efforts in securing the core business and positioning the company for growth." Mesaba's senior executives "took a cut in their base salaries and declined to take an incentive payout in August 2006," she said.
Mesaba President John Spanjers makes below the industry average: His 2006 total compensation was $193,900 versus 2005 total compensation of $575,661 for Philip Trenary, CEO of rival Pinnacle Airlines, based in Memphis, Tenn., Costello said.
Both Mesaba and Pinnacle fly regional routes for Northwest Airlines. Mesaba flies 50 regional aircraft, connecting passengers from smaller cities to Northwest's airport hubs in Detroit, the Twin Cities and Memphis.
Under Mesaba's incentive plan, Spanjers would reap the biggest bonus — $308,348; William Poerstel, vice president of flight operations, would receive $212,282; and three other vice presidents would receive amounts ranging from $188,843 to $189,904.
The executives must see Mesaba through its bankruptcy process to receive the money, which also is contingent on the management and repayment of the unsecured creditors' claims as soon as possible, Costello said.
Mesaba on Monday filed its reorganization plan, which details Mesaba's sale to Northwest Airlines in exchange for $145 million in claims in Northwest's separate bankruptcy case. Mesaba's creditors committee expects that amount to cover all claims and possibly interest. Mesaba and the committee said in the disclosure statement that the plan allows for a larger repayment than if the company was liquidated.
The disclosure statement revealed that Mesaba will continue to lease its headquarters building in Eagan and that its four directors, including Spanjers, will step down once the company emerges from bankruptcy this spring and becomes a subsidiary of Northwest.
However, other corporate details, such as whether the top officials stay, if there will be any job cuts and the makeup of Mesaba's fleet, remain unclear. Mesaba will iron out such details in the next 60 to 90 days, Costello said.
Mesaba posted a loss of $9 million on revenue of $154.6 million for the six months ended Sept. 30, 2006, according to the statement. Its cash on hand fell to $7.7 million versus $20.7 million as of March 31, 2006.
http://www.twincities.com/mld/pioneerpress/16538524.htm
