Delta execs get awards based on '98 incentive program
By RUSSELL GRANTHAM
The Atlanta Journal-Constitution
Published on: 03/01/04
Delta Chairman Leo Mullin and four other executives got more than $350,000 worth of stock or cash equivalents last week under a long-term incentive pay program created in 1998.
According to Securities and Exchange Commission filings, Mullin got the biggest award: 26,000 shares currently valued at about $235,000. Mullin, who abruptly announced late last year that he was stepping down as CEO, retires April 23.
Delta President Fred Reid got 4,240 shares, worth $37,524 on the award date of Feb. 24.
The awards to three others were split evenly between Delta stock and cash of equal value, said spokesman John Kennedy.
Chief Financial Officer Michele Burns received 1,920 shares, worth about $17,000. Executive vice presidents Vicki Escarra and Robert Colman each got 1,740 shares, worth about $15,400. Burns', Escarra's and Colman's cash awards would be equal amounts.
The stock and cash awards are unrelated to last year's controversy over millions Delta spent on executive bonuses and bankruptcy-proof pensions set up after 9/11. However, they come as Delta struggles to reverse losses, boost morale and win pay concessions from pilots.
Delta's new CEO, Gerald Grinstein, has said the company won't pay executives bonuses or other annual incentive compensation for 2003. He did not address longer-term incentives like those that triggered the stock awards.
The awards were the minimum payouts Delta envisioned when it set up the plan in 1998. For instance, Mullin was to receive between 26,000 and 130,000 shares based on measures such as Delta's position in on-time rankings. Delta's stock declined 75 percent and its DOT rankings remained in the middle of the pack during that period.
Also: Delta's senior vice president of corporate communications, Thomas Slocum, 55, said he plans to retire June 1 to spend more time with his family.
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By RUSSELL GRANTHAM
The Atlanta Journal-Constitution
Published on: 03/01/04
Delta Chairman Leo Mullin and four other executives got more than $350,000 worth of stock or cash equivalents last week under a long-term incentive pay program created in 1998.
According to Securities and Exchange Commission filings, Mullin got the biggest award: 26,000 shares currently valued at about $235,000. Mullin, who abruptly announced late last year that he was stepping down as CEO, retires April 23.
Delta President Fred Reid got 4,240 shares, worth $37,524 on the award date of Feb. 24.
The awards to three others were split evenly between Delta stock and cash of equal value, said spokesman John Kennedy.
Chief Financial Officer Michele Burns received 1,920 shares, worth about $17,000. Executive vice presidents Vicki Escarra and Robert Colman each got 1,740 shares, worth about $15,400. Burns', Escarra's and Colman's cash awards would be equal amounts.
The stock and cash awards are unrelated to last year's controversy over millions Delta spent on executive bonuses and bankruptcy-proof pensions set up after 9/11. However, they come as Delta struggles to reverse losses, boost morale and win pay concessions from pilots.
Delta's new CEO, Gerald Grinstein, has said the company won't pay executives bonuses or other annual incentive compensation for 2003. He did not address longer-term incentives like those that triggered the stock awards.
The awards were the minimum payouts Delta envisioned when it set up the plan in 1998. For instance, Mullin was to receive between 26,000 and 130,000 shares based on measures such as Delta's position in on-time rankings. Delta's stock declined 75 percent and its DOT rankings remained in the middle of the pack during that period.
Also: Delta's senior vice president of corporate communications, Thomas Slocum, 55, said he plans to retire June 1 to spend more time with his family.
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