Senator McCain slams Delta

[rightrudder]

Mullin isn't the only CEO making out like a bandit:

United CEO Gets $9.65 Million Pay Package
Friday March 28, 8:27 pm ET


NEW YORK (Reuters) - Glenn Tilton (News), who is trying to lead United Airlines Inc. out of bankruptcy, last year received a pay package worth as much as $9.65 million, a securities filing shows.
The chairman and chief executive of the No. 2 U.S. carrier, who was named to those positions last September, received a $312,314 salary and a $3 million bonus for 2002, according to the annual report filed Friday with the U.S. Securities and Exchange Commission (News - Websites) by UAL Corp. (NYSE:UAL - News), United's parent.

The report also shows that Tilton, 54, received $287,000 of restricted stock, $88,683 of other compensation, and 1.15 million stock options with a $1,460,500 hypothetical present value as of the grant date. In addition, UAL paid $4.5 million to three trusts on Tilton's behalf, the filing shows.

The full trust payments will be made only if Tilton stays for at least three years, a spokesman said. Additionally, Tilton will forfeit his bonus if he leaves the company in less than two years.

Tilton's pay package is larger than the $1.45 million that David Siegel, CEO of U.S. Airways Group Inc. (OTC BB:UAWGQ.OB - News), which is also in bankruptcy protection made last year, according to that carrier's annual report. Siegel's restricted stock and stock options are now worthless, U.S. Airways said.

The package is structured to compensate for the retirement benefits Tilton gave up to work for United, a spokesman said.

United, which is based in Elk Grove Village, Illinois, filed for Chapter 11 bankruptcy protection from creditors on Dec. 9. On Thursday it said it reached a tentative six-year pact with pilots to save $1.1 billion a year, nearly half of the $2.56 billion of annual labor costs that United said it needs to eliminate.

The New York Stock Exchange on Friday said it will delist UAL shares on April 3 because the stock has traded under $1 per share over a 30-day period. The shares closed Friday at 85 cents, up 1 cent.

In its annual report, UAL also said it expects to post a $900 million operating loss for the first three months of 2003. It lost $307 million in February and $331 million in January

 

[Cardinal]

Firstly, 'ole Leo deserves all the bad PR he'll get from this. It is shameful to be playing it both ways like that with his company in such rough shape.

But.

Who the heck is John McCain to dictate what Mullin or any other American can make? This is capitalism, and this is a democracy. If Leo can make more money by turning his aircraft into beer cans and selling lemonade, let him. If he can profit in the midst of failure, well, thats how the system works sometimes. Yes, Delta et al got a chunk of Government money. What exactly did we think they were going to do with that money other than A) Spend it, or B) Spend it? A billion here and a billion there will not guarantee free air travel for all eternity, and neither it will not change the structure of the industry, the same old crap will go on. The fact that the airlines took a scrap from the Government table did not automatically nationalize the industry. Delta is not a bloody state-run entity, not Aeroflot circa 1980! McCain seems to be suffering from his excessive exposure to communist rule. The political powers, and presumably the people that back them, was willing to give handouts, for whatever reason. Cool, the airlines needed the money. Yet it was the gov't that took the risk, they didn't know where the money would go, they didn't know if this cash would even save the carriers. If more money might be on the way, well, more power to the congressional boys. But it doesn't change anything. The Board is free to pay Leo whatever it want's to pay him.

And while I'm torqued, what is McCain's hangup, anyway? The only time he ever pipes up is when an exec is getting too much money, a politician is accepting too much money, or a pilot is earning too much money. Did his squadron mates give him wedgies, then leave to fly for the airlines? Did Pan Am say he was too short? Anyway, allow me to reitterate, this is a very poor time to bump one's salary by a few mil.

 

[pilotyip]

Leadership

It is about leadership, who would follow a boss, commander, Captain whatever, who takes for himself while the people in his care are suffering, it may be captialism, it may be the american way, but it is not leadership. Read about Sen John and you may understand more about leadership. We have alot of "managemnt " in this country, but I think we are a bid short on leadership. Those are people you want to follow.

 

[FlyBoeingJets]

Who the heck is John McCain to dictate what Mullin or any other American can make? This is capitalism, and this is a democracy...Blah, Blah, Blah....The Board is free to pay Leo whatever it want's to pay him.

Management's job is to manipulate us and market to us. Your naive attitude is just what they want. If you doubt the veiled attempt to break labor for the sake of breaking labor and to enhance profits when the economy turns around, you are mistaken.

The reality is executives make big bucks whether or not their company is.

Power is the name of the game. Some call it capitalism and some confuse it with the concept of Democracy.

 

[Cardinal]

WTF? It is not naive to assert that a corporation can dictate it's employees (in the case CEO's) earnings. Where did I say that management was or was not trying to break labor? Of course they are! They always are, and particularly now during this industry weakness. But begrudging a CEOs ill-gotten salary does not one wit of good, and is hardly relevant. In fact it is the very height of hypocrisy, if we should ask the shareholders to pay us what we think "we are worth."

Setting a trend of "salary caps" in this industry will only screw us down the road. What prevents McCain from also stipulating that no labor group may be granted a raise after the acceptance of subsidy/reduction of taxes? Nothing prevents it! It might not affect you right now, while you're taking concessions, but it would sure affect the regional guys who might have a chance at bettering their contract. And it would surely screw you and us all once times improve. Putting freezes on market forces is a slippery slope that would eventually destroy the economy and nation. It is naivety to ask or let a power hungy and economically ignorant politician to dictate terms to you and your company.

 

[patq1]

Chairman and Chief Executive Leo Mullin received a package in 2002 worth about $13 million, more than doubling his previous pay, at a time of widespread industry layoffs.

.... The filing also said that Mullin reduced his salary by 10 percent effective March 1 "to demonstrate his commitment to share the burden of Delta's cost reduction goals."

Nice job Leo! Way to share the burden! Double your pay and then cut it 10 percent. I'm sure it must really hurt

 

[Palerider957]

You know fellas, there was some mention that bonusses were issued to "sure up" the retirement and pensions of the senior VP's at Delta. I wonder if some of these massive $$ packages aren't a prelude to bankrupty or eventual dissolution (potentially at United) I wouldn't be suprised at all if these bonusses were written in the the VPs agreements in case of hard times...they get their golden parachute and meet each other for drinks on the yacht, everyone else gets a pink slip...cute.