http://www.commercialappeal.com/new...nes-gives-top-two-executive/?CID=happeningnow
Pinnacle Airlines Corp. has approved hefty raises for its CEO and his right-hand man in the midst of a struggle to stave off bankruptcy.
Pinnacle’s board raised CEO Sean Menke’s base salary $250,000 a year, to $675,000, and it gave chief operating officer and executive vice president John Spanjers a $125,000 bump, to $400,000.
The announcement came in a regulatory filing after markets closed today with Pinnacle at $1.32 a share, up 2 cents.
A company statement said the top two executives will shoulder heavier workloads after the March 30 departure of chief financial officer Ted Christie. It said a comprehensive restructuring has increased both men’s duties beyond the scope of previous employment contracts.
Pinnacle, which operates feeder flights for Delta, United and US Airways, launched an effort last December to shed costs, boost revenues and keep its planes flying without going into Chapter 11 bankruptcy reorganization. The company has about 650 employees in its Downtown Memphis headquarters and about 8,000 companywide.
The company previously asked its unions to take 5 percent pay cuts and said non-union employees would also have their pay cut.
Menke, who helped guide Frontier Airlines through bankruptcy, was hired last June to succeed former president and CEO Phil Trenary.
“The challenges facing Pinnacle today are more complex than when Mr. Menke joined the company a year ago,” a Pinnacle statement said.
“Pinnacle’s multifaceted restructuring activities along with the pending departure of the company’s CFO have significantly increased Mr. Menke’s responsibilities. “
Christie is becoming CFO of Spirit Airlines, an up and coming discount carrier.
“In light of the increased responsibilities, our board of directors elected to increase his compensation package,” the statement continued.
“As Mr. Menke’s responsibilities for Pinnacle’s restructuring activities increase with the departure of the company CFO, Mr. Spanjers is being asked to assume additional responsibilities related to leading the ongoing operations of the airline. The board adjusted Mr. Spanjers compensation accordingly.”
Spanjers, formerly president and chief operating officer at Pinnacle’s Mesaba Aviation unit, was named vice president and COO of the parent company last October.
The amended employment agreement says Menke’s base salary for bonus calculation purposes would remain at $425,000 a year, and that he won’t be entitled to long-term incentive plan cash awards based on 2012 results.
Pinnacle spokesman Eric Epperson said the action recognized it will take time to replace Christie.
“We’re still in the thick of this restructuring,” Epperson said.
Pinnacle Airlines Corp. has approved hefty raises for its CEO and his right-hand man in the midst of a struggle to stave off bankruptcy.
Pinnacle’s board raised CEO Sean Menke’s base salary $250,000 a year, to $675,000, and it gave chief operating officer and executive vice president John Spanjers a $125,000 bump, to $400,000.
The announcement came in a regulatory filing after markets closed today with Pinnacle at $1.32 a share, up 2 cents.
A company statement said the top two executives will shoulder heavier workloads after the March 30 departure of chief financial officer Ted Christie. It said a comprehensive restructuring has increased both men’s duties beyond the scope of previous employment contracts.
Pinnacle, which operates feeder flights for Delta, United and US Airways, launched an effort last December to shed costs, boost revenues and keep its planes flying without going into Chapter 11 bankruptcy reorganization. The company has about 650 employees in its Downtown Memphis headquarters and about 8,000 companywide.
The company previously asked its unions to take 5 percent pay cuts and said non-union employees would also have their pay cut.
Menke, who helped guide Frontier Airlines through bankruptcy, was hired last June to succeed former president and CEO Phil Trenary.
“The challenges facing Pinnacle today are more complex than when Mr. Menke joined the company a year ago,” a Pinnacle statement said.
“Pinnacle’s multifaceted restructuring activities along with the pending departure of the company’s CFO have significantly increased Mr. Menke’s responsibilities. “
Christie is becoming CFO of Spirit Airlines, an up and coming discount carrier.
“In light of the increased responsibilities, our board of directors elected to increase his compensation package,” the statement continued.
“As Mr. Menke’s responsibilities for Pinnacle’s restructuring activities increase with the departure of the company CFO, Mr. Spanjers is being asked to assume additional responsibilities related to leading the ongoing operations of the airline. The board adjusted Mr. Spanjers compensation accordingly.”
Spanjers, formerly president and chief operating officer at Pinnacle’s Mesaba Aviation unit, was named vice president and COO of the parent company last October.
The amended employment agreement says Menke’s base salary for bonus calculation purposes would remain at $425,000 a year, and that he won’t be entitled to long-term incentive plan cash awards based on 2012 results.
Pinnacle spokesman Eric Epperson said the action recognized it will take time to replace Christie.
“We’re still in the thick of this restructuring,” Epperson said.
