"Top execs at Delta given stock shares: Rank and file, however, got buyout offers"

Voice Of Reason

Reading Is Fundamental !
Joined
Sep 21, 2004
Posts
1,369
Total Time
15 min
"Top execs at Delta given stock shares: Rank and file, however, got buyout offers"

Wow--you guys must be doing even better than they are telling you to afford this:

"Top execs at Delta given stock shares

Rank and file, however, got buyout offers

By Kelly Yamanouchi
The Atlanta Journal-Constitution
Thursday, February 19, 2009
Delta Air Lines last month gave hundreds of thousands of shares of its stock to executives as part of a long-term incentive plan, while it was also offering buyouts to employees to shrink its work force and adjust to weaker demand for travel.
Delta distributed 398,560 shares to Delta Chief Executive Richard Anderson; 181,160 shares to President Edward Bastian; and tens of thousands of shares each to executives Mike Campbell, Mike Becker, Steve Gorman, Hank Halter, Glen Hauenstein and Richard Hirst.
The shares are restricted, and the executives can sell or transfer half of them Feb. 1, 2010, or later and the other half Feb. 1, 2011, or later, if those executives are still employed by Delta.
Because of those restrictions it’s unclear how much the stock grants will be worth. But based on Delta’s closing stock price Tuesday, the shares distributed to Anderson in January would be worth about $2.3 million and Bastian’s would be worth close to $1 million. Delta’s shares closed at $5.71 Wednesday, down 10 percent, and have fallen about 66 percent in the last year.
Meanwhile, Delta did not pay out any profit sharing to employees or annual cash bonuses under its management incentive plan because it reported an $8.9 billion loss last year. Most of the loss was from restructuring and other charges.

But the airline did give pay raises across the company effective Jan. 1. “Delta continues to invest in all employees across all levels through merger equity grants, pay raises, performance incentives, retirement plan contributions” and the pay increases, said Delta spokesman Kent Landers.
The stock distributions are annual grants under Delta’s 2009 long-term incentive plan, which the company expects to detail in its proxy to be filed in 2010.
The stock grants are essentially retention incentives, part of the board’s philosophy to “place a substantial portion of leaders’ pay at risk over time,” which is tied to the long-term performance of the company, Landers said. They pay out based on how long executives work for the company, and because they are issued in stock their value depends on Delta’s stock price. But the amount of stock awarded is not based on past performance.
During bankruptcy, Delta cut employee pay and did not offer a long-term incentive program to executives. But the company developed a new compensation system when it emerged from bankruptcy. Executives and all other employees received stock when Delta exited bankruptcy in 2007 and when the company completed its merger with Northwest Airlines last year.
Joseph Tiberi, a spokesman for the International Association of Machinists, which represents baggage handlers, customer service agents, reservations agents and others from Northwest, said “the tolerance for such compensation in today’s environment is wearing thin.”
“Congress is mandating that executives who take advantage of federal bailout money have to limit their compensation, and Delta executives who have taken money from employees in bankruptcy should be doing the same,” Tiberi said.
Delta’s incentives also include a program called “Shared Rewards” for employees below the director level. Those incentives at Delta pay up to $100 per month based on baggage handling performance, flight cancellation and delay rates. "




Find this article at:
http://www.ajc.com/services/content/printedition/2009/02/19/deltapay0219.html
 

Voice Of Reason

Reading Is Fundamental !
Joined
Sep 21, 2004
Posts
1,369
Total Time
15 min
Didn't I read that there were NO buyout offers for your combined pilot group? Are there ANY plans to do so?
"2,100 want Delta buyout

By Kelly Yamanouchi
The Atlanta Journal-Constitution
Thursday, February 19, 2009
Delta Air Lines said more than 2,100 employees have signed up to take buyouts as the company seeks to reduce its work force.
Delta said in an internal update to its employees Wednesday that the next step is to determine how the number of volunteers meets the company’s needs, based on its schedule for the fall and into 2010. Delta plans to cut its flight capacity by 6 percent to 8 percent this year.
“We will be thoughtful, yet decisive, in managing through this global recession,” said Delta’s vice president of talent diversity and field human resources Cynthia Per-Lee in the message to employees Wednesday. “In the end, we have to have the right size airplanes in the right markets to match the number of customers who want to buy tickets, and we have to have the right number of people to serve those customers.”
The company has not yet said whether it will also need to lay off employees. Delta chief executive Richard Anderson said in January that he expected about 2,000 employees to take the buyouts. Delta, which merged with Eagan, Minn.-based Northwest Airlines last fall, has about 75,000 employees. Buyouts of 2,100 would amount to about 2.8 percent of employees.
The window for employees to sign up for the voluntary severance and early-out programs closed last week.
Last year, Delta cut more than 4,000 employees through buyouts."



Find this article at:
http://www.ajc.com/services/content/business/stories/2009/02/19/buyouts0219.html
 

Superpilot92

LONGCALL KING
Joined
Nov 7, 2004
Posts
3,719
Total Time
Dunno?
Pilots were excluded from even applying for buyouts.
 

Voice Of Reason

Reading Is Fundamental !
Joined
Sep 21, 2004
Posts
1,369
Total Time
15 min
Pilots were excluded from even applying for buyouts.
But WHY? Are you overstaffed? They are coming up with a great plan?... Or just plan to start laying off without bothering? What are you guys being TOLD????

ALSO-- how to they intend to handle the onslaught of pilots needing training for all of those that were (allegedly) "displaced" and supposed to be online in their new aircrafts in a couple months? Are they really putting all those guys through at once? Sounded like a lot are supposed to be ready to go in their displaced planes very soon? That's a lot of training at once, right?

 
Last edited:

samballs

Well-known member
Joined
Apr 26, 2005
Posts
1,511
Total Time
000000
Think I'd rather get a buyout then Delta stock
 

ACL65PILOT

Well-known member
Joined
Dec 6, 2006
Posts
4,621
Total Time
9000+
They did not want to offer a buy out for a lot of reasons. 1) It really makes not difference with those with a pension if they are given 10 more years or not. It is the same either way.
2) We may in fact be short staffed mid 2010. There are no plans to furlough. We still have jets coming that need to be staffed.
 

Voice Of Reason

Reading Is Fundamental !
Joined
Sep 21, 2004
Posts
1,369
Total Time
15 min
They did not want to offer a buy out for a lot of reasons. 1) It really makes not difference with those with a pension if they are given 10 more years or not. It is the same either way.
2) We may in fact be short staffed mid 2010. There are no plans to furlough. We still have jets coming that need to be staffed.
I hope that's true! Ramp up that NW/DL hiring machine!
...so does that mean they really ARE going to have ALLLLL those displaced people at once through training and in position in a month or two?
 
Last edited:

Superpilot92

LONGCALL KING
Joined
Nov 7, 2004
Posts
3,719
Total Time
Dunno?
I hope that's true! Ramp up that NW/DL hiring machine!
...so does that mean they really ARE going to have ALLLLL those displaced people at once through training and in position in a month or two?

All of those displaced people? It doesnt all happen at one time. Training is spread out over months. Some got displaced before others and thus will go to training before others. Pretty standard in the 121 world. Like ACL said, we will likely be short people before we are fat on people, thus why mgmt excluded pilots from applying for early out packages. Could change tomorrow but that's what is foreseen as of now.
 

Voice Of Reason

Reading Is Fundamental !
Joined
Sep 21, 2004
Posts
1,369
Total Time
15 min
All of those displaced people? It doesnt all happen at one time. Training is spread out over months. Some got displaced before others and thus will go to training before others. Pretty standard in the 121 world. Like ACL said, we will likely be short people before we are fat on people, thus why mgmt excluded pilots from applying for early out packages. Could change tomorrow but that's what is foreseen as of now.
Hmm, well last month either here or ALPC someone posted pretty significant displacement #s (from the NW side alone I remember) they said were for pilots to be ONLINE in that displaced equip in MAY. Is that wrong?

( to clarify: I was not inferring just fNW side displaced...There were equally significant reports or #s posted for fDL side as well, I just remember the MAY post referred to the fNW side)
 
Last edited:

ACL65PILOT

Well-known member
Joined
Dec 6, 2006
Posts
4,621
Total Time
9000+
I hope that's true! Ramp up that NW/DL hiring machine!
...so does that mean they really ARE going to have ALLLLL those displaced people at once through training and in position in a month or two?
Everyone is slated to be trained by June. Just in time for a possible reinstatement. We have a lot of heavy lift coming in the next year and a half. We have even more than what has been announced. There is a good amount of narrow body lift just around the corner too. Once we start to take off after we are past SOC, I think most airlines and people are going to be blow away. It looks good on paper.
It was stated that the first two to three years would be difficult as we grew and shrank as we merged, after that we would be unstoppable.
 

180ToTheMarker

12 months of October
Joined
Feb 18, 2003
Posts
658
Total Time
10K
There are no plans to furlough. We still have jets coming that need to be staffed.
Hey ACL I appreciate all your insights but have a question. A few weeks ago you said "I'd be suprised if we don't furlough." Now you say there are no plans to furlough. What has changed?

Thanks
 

ACL65PILOT

Well-known member
Joined
Dec 6, 2006
Posts
4,621
Total Time
9000+
Hey ACL I appreciate all your insights but have a question. A few weeks ago you said "I'd be suprised if we don't furlough." Now you say there are no plans to furlough. What has changed?

Thanks
The staffing requirements for summer 2010. Jets coming that are not officially announced.
 

Voice Of Reason

Reading Is Fundamental !
Joined
Sep 21, 2004
Posts
1,369
Total Time
15 min
I think most airlines and people are going to be blow away. It looks good on paper.
It was stated that the first two to three years would be difficult as we grew and shrank as we merged, after that we would be unstoppable.
Well, hopefully they realize that if they DO furlough, that perception, especially in the eyes of potential investors (as well as the public), would be blown.

They need to prove they are separating from the pack (other airlines AND the scums on Wall St) and no longer using pilots as ATMs (and sacrificial lambs to furlough) as they collect on their stock options.

THEN they very well may be unstoppable.
 

ACL65PILOT

Well-known member
Joined
Dec 6, 2006
Posts
4,621
Total Time
9000+
True and that is sad.

I am not saying that we will not furlough, all I am saying is that there are no plans now to do so, add to that the 2010 projections that are just now coming in to focus and it makes it harder and harder to justify.
Now if there are a few stupid moves made by unnamed parties in the next six months, all bets are off.
 

ThisistheDream

Well-known member
Joined
Jun 18, 2004
Posts
293
Total Time
99
There is a no furlough clause..So there wont be any furloughs unless they go back into Bankruptcy
 

nwaf16dude

Well-known member
Joined
Nov 8, 2008
Posts
305
Total Time
7000+
Buying out senior pilots is an extremely expensive proposition, much more so than buying out flight attendants or or gate agents. First, the cost to get someone to give up widebody captain pay is huge of course. Then there is the follow-on cost of the training waterfall to replace wide-body captains, and all the other positions that have to be back filled.

Buyouts would only be affordable if they were planning on parking the seats abandoned by the guys taking the buyout.
 

DAL737FO

Well-known member
Joined
Feb 17, 2002
Posts
389
Total Time
8000+
There is a no furlough clause..So there wont be any furloughs unless they go back into Bankruptcy
I needed a good laugh this morning. I hope this was tongue in cheek and you aren't actually hanging your hat on a "no furlough clause".
 

Voice Of Reason

Reading Is Fundamental !
Joined
Sep 21, 2004
Posts
1,369
Total Time
15 min
Buying out senior pilots is an extremely expensive proposition, much more so than buying out flight attendants or or gate agents. First, the cost to get someone to give up widebody captain pay is huge of course. Then there is the follow-on cost of the training waterfall to replace wide-body captains, and all the other positions that have to be back filled.

Buyouts would only be affordable if they were planning on parking the seats abandoned by the guys taking the buyout.
There is a training waterfall there ANYWAY, and it is all done in house, sooooo....rather than paying the unexpected 5 extended years of higher salary, take care of it now while everyone is training anyway.
Also get rid of anyone who isn't properly "representing" the interests of your pilot group and using your dues to represent RA.
 

maxblast72

Well-known member
Joined
Jun 5, 2006
Posts
931
Total Time
9000+
Well, hopefully they realize that if they DO furlough, that perception, especially in the eyes of potential investors (as well as the public), would be blown.
Investors don't care about whether Delta furloughs or not. Investors care about whether Delta has the right cost structure going forward and can produce a profit/be cash flow positive. If Delta has pilots are not being fully utilized and a furlough/displacement bid can provide Delta savings within a certain time period, investors would say do it.
 
Top