Now This is Leadership

UALIADCS

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Oct 17, 2005
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http://news.airwise.com/story/view/1174390644.html

Tuesday March 20, 2007
Delta Plans USD$720 Mln Staff Payout
March 20, 2007
Delta Air Lines plans to reward employees and managers, but not its chief executive, with about USD$720 million in cash and stock when it exits bankruptcy in the coming weeks, the airline said.

Delta, which squeezed USD$1 billion in savings from its employees, is trying to make up for a tumultuous year and a half in bankruptcy. Since filing for Chapter 11 in September 2005, Delta slashed wages to below industry rates and dropped a pension plans for its pilots.

"These are the employees that saved the company," Chief Financial Officer Edward Bastian said in a phone interview.

Delta's generosity is fueled in part by a turnaround in the fortunes of the long-suffering US airline industry. Resurgent demand and lower costs have helped the industry post profits after years of losses following the attacks of September 11, 2001.

Delta said it plans to give its 39,000 non-union employees 3.5 percent of the airline's new shares, valued at about USD$350 million. It also plans to pay them a cash lump-sum of about USD$130 million. The payments work out to an average of about USD$12,300 per employee.

Delta's 1,200 managers will get USD$240 million overall, or about USD$200,000 each on average. But they will not get cash, and unlike regular employees, who can sell their stock immediately, the managers' awards are in the form of restricted stock, stock options, and performance shares, vesting over periods between 6 months and three years.

Chief Executive Gerald Grinstein, who led the company during its restructuring and fended off a hostile takeover bid from US Airways, refused an exit bonus.

Instead, Delta said it is setting up two charitable foundations at Grinstein's request to help Delta employees and their families pay for college or overcome personal hardships. Grinstein, who is 74, plans to retire shortly after Delta emerges from bankruptcy.

Delta also plans to raise non-union employee wages by about 4 percent this summer, as part of a promise to lift their wages gradually to industry standards. The extra wages will add about USD$60 million to annual labor costs, Bastian said.

For union and non-union employees, Delta plans to pay out 15 percent of its annual pre-tax profit and will offer monthly incentives for meeting operational targets for on-time arrivals, flight completion, and baggage handling.

The compensation plan has been approved by Delta's creditor committee. The carrier plans to exit bankruptcy in the second quarter.

(Reuters)

WAY TO GO!!! Congratulations DL!
 
United Airlines, Tilton should take lessons on what Delta is doing and reward the employees of UAL the same. I heard Delta is also rewarding it's flight attendants, cabin jumpseat between American Airlines and Delta to pass ride for work. United won't even give it's crew member's cabin jump seat. Why is Tilton so stuck on not doing what's right for it's employees after all we have done. Hell we signed for the china route and now he doesn't even care about us. Way to go Delta.. You will end up coming out on top of this.
 
(was looking for this thread on the DL board, here is news that should be trumpeted!)

Grinstein did the right thing here, kudos to him!

Tilton & Brace are obscene for the things they have done to the company.

And yet your BOD allows them to hang around......
 
...or maybe it's pennance for luring Mullin to DL? He's 74 and made PLENTY merging Burlington Northern & Santa Fe. The more interesting piece will be to see who the BOD picks as the next CEO. I hear Fred Reid is available again...
 
...or maybe it's pennance for luring Mullin to DL? He's 74 and made PLENTY merging Burlington Northern & Santa Fe. The more interesting piece will be to see who the BOD picks as the next CEO. I hear Fred Reid is available again...



Fred Reid?? Ha!Ha! :lol: :lol:
Fred Mertz has a better chance at the run for CEO.
mertz_35.jpg

... and he's dead!
 
http://news.airwise.com/story/view/1174390644.html

Tuesday March 20, 2007
Delta Plans USD$720 Mln Staff Payout
March 20, 2007
Delta Air Lines plans to reward employees and managers, but not its chief executive, with about USD$720 million in cash and stock when it exits bankruptcy in the coming weeks, the airline said.

Delta, which squeezed USD$1 billion in savings from its employees, is trying to make up for a tumultuous year and a half in bankruptcy. Since filing for Chapter 11 in September 2005, Delta slashed wages to below industry rates and dropped a pension plans for its pilots.

"These are the employees that saved the company," Chief Financial Officer Edward Bastian said in a phone interview.

Delta's generosity is fueled in part by a turnaround in the fortunes of the long-suffering US airline industry. Resurgent demand and lower costs have helped the industry post profits after years of losses following the attacks of September 11, 2001.

Delta said it plans to give its 39,000 non-union employees 3.5 percent of the airline's new shares, valued at about USD$350 million. It also plans to pay them a cash lump-sum of about USD$130 million. The payments work out to an average of about USD$12,300 per employee.

Delta's 1,200 managers will get USD$240 million overall, or about USD$200,000 each on average. But they will not get cash, and unlike regular employees, who can sell their stock immediately, the managers' awards are in the form of restricted stock, stock options, and performance shares, vesting over periods between 6 months and three years.

Chief Executive Gerald Grinstein, who led the company during its restructuring and fended off a hostile takeover bid from US Airways, refused an exit bonus.

Instead, Delta said it is setting up two charitable foundations at Grinstein's request to help Delta employees and their families pay for college or overcome personal hardships. Grinstein, who is 74, plans to retire shortly after Delta emerges from bankruptcy.

Delta also plans to raise non-union employee wages by about 4 percent this summer, as part of a promise to lift their wages gradually to industry standards. The extra wages will add about USD$60 million to annual labor costs, Bastian said.

For union and non-union employees, Delta plans to pay out 15 percent of its annual pre-tax profit and will offer monthly incentives for meeting operational targets for on-time arrivals, flight completion, and baggage handling.

The compensation plan has been approved by Delta's creditor committee. The carrier plans to exit bankruptcy in the second quarter.

(Reuters)

WAY TO GO!!! Congratulations DL!


You are childish to believe that he will not be compensated equally if not more than Tilton.
Not better PR, just different (and possibly better accounting practices).
End result for the 'surviving' employees will not change.

B) UT
 
You are childish to believe that he will not be compensated equally if not more than Tilton.
Not better PR, just different (and possibly better accounting practices).
End result for the 'surviving' employees will not change.

B) UT

I think you are wrong.
Link
 
Why would you expect UA's BOD to hold Tilton or Brace to account for their incompetent leadership? Tilton is the one who chose this BOD. So they are aligned to him. This is the problem with corporate governance in situations like this. When a system is set up such that a CEO can choose his Board, what do you think the odds are that that Board is going to hold that CEO accountable? It's a quid pro quo arrangement. Those in that tax bracket could give a damn about the average employees for the company. They only care about one thing.....how they can make themselves richer.
 
I hope I am wrong :up:
B) UT

You are. Grinstein is doing the right thing. The man is wealthy and does not need anymore money. Perhaps this is his way of making it up to the Delta people for the Leo Mullin & cronies debacle. Only he knows, but the fact remains that he is doing the right thing by the employees at delta.

Parker at US, Tilton at UA, Streenland at NW would do well to emulate this example. That is of course if they are interested in managing a company long term.
 
Oh please. Let's be careful in showering praise on Grinstein for his decision to not seek a phat payday upon Delta's emergence from bankruptcy. Keep in mind that Grinstein has been on Delta's BOD for a LONG time. He was there during the Leo Mullin debacle, which included the controversial bonus program. He actually voted in favor of it. This is his opportunity to garner some good press for Delta management and curry favor with the employees, whom he managed to manipulate pretty well during the US Airways merger offer. He still has done a lousy job of restructuring Delta to survive and prosper outside bankruptcy.
 
Oh please. Let's be careful in showering praise on Grinstein for his decision to not seek a phat payday upon Delta's emergence from bankruptcy. Keep in mind that Grinstein has been on Delta's BOD for a LONG time. He was there during the Leo Mullin debacle, which included the controversial bonus program. He actually voted in favor of it. This is his opportunity to garner some good press for Delta management and curry favor with the employees, whom he managed to manipulate pretty well during the US Airways merger offer. He still has done a lousy job of restructuring Delta to survive and prosper outside bankruptcy.


Tiltons done a louSIER job and he got a phat paycheck! :down: I still say Kudos to Grinstein. :up:
 
This is his opportunity to garner some good press for Delta management and curry favor with the employees,


And your point would be???

He still has done a lousy job of restructuring Delta to survive and prosper outside bankruptcy.

Care to elaborate? Delta will have the lowest CASM amongst the legacies. Delta will be positioned as well as any other legacy carrier having reduced its total debt from roughly 20 billion to 7-8 billion.
 
luv2fly said:
Care to elaborate? Delta will have the lowest CASM amongst the legacies. Delta will be positioned as well as any other legacy carrier having reduced its total debt from roughly 20 billion to 7-8 billion.

That's all well and good, as we've heard that claim dozens of times from WorldTraveler over the past couple of years. What really matters is whether DL's revenues are gonna be larger than its allegedly industry-leading low costs; margin between the two really matters, not the absolute revenues and costs.
 

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