NWA's latest slap in the face to its employees

[PurduePete]

Funny how this information did not get revealed until after the F/A's tenatively agreed to their concessionary contract... :angry:

http://www.twincities.com/ci_5819763?sourc...;nclick_check=1

NWA's CEO to get stock valued at $25 million-plus

Northwest Airlines' CEO Doug Steenland will receive restricted stock valued at $20.8 million and stock options valued at $5.8 million after the carrier emerges from bankruptcy next month, the company said today.

In addition, Northwest will award an estimated $10 million to $13.5 million in stock grants to four executive vice presidents - Neal Cohen, J. Timothy Griffin, Philip Haan and Andy Roberts. The airline said that its compensation committee has not yet finalized the specific amounts per executive.

The stock awards come at a time when executive compensation is a hot topic at Northwest. Last year, the Eagan-based airline achieved $1.4 billion in annual labor costs cuts from employees. Union groups say their have taken wage, benefit and other cuts of up to 40 percent. The company plans to distribute about $1.6 billion to its more than 30,000 employees in claims, profit sharing and incentive awards through 2010.

The latest executive compensation is part of a larger management equity plan that Eagan-based Northwest detailed in March, which calls for 4.9 percent of stock in the newly reorganized Northwest to be awarded to about 400 company officers and directors.

Northwest says the 4.9 percent management equity plan is lower than the 8.9 percent of equity held by management before the airline filed for Chapter 11 bankruptcy in September 2005, United Airlines' post-bankruptcy plan (8 percent) and US Airways' post-bankruptcy plan (6.25 percent).

The company says it is also below the average held by management at Fortune 200 companies (8.5 percent).
Northwest said today in a statement that the compensation is key for the airline to recruit and retain "top-tier" management. Since 2005, Northwest said about 25 percent of its officers have left the company for higher-paying jobs at other companies - most of them outside of the airline industry.

 

[avek00]

If people don't like the size of the management compensation packages, then they need to start giving a damn as to who gets on the BOD, which approves the packages. Complaining about the packages after the fact does little to move the ball forward for anyone.

Funny how this information did not get revealed until after the F/A's tenatively agreed to their concessionary contract... :angry:

http://www.twincities.com/ci_5819763?sourc...;nclick_check=1

NWA's CEO to get stock valued at $25 million-plus

Northwest Airlines' CEO Doug Steenland will receive restricted stock valued at $20.8 million and stock options valued at $5.8 million after the carrier emerges from bankruptcy next month, the company said today.

In addition, Northwest will award an estimated $10 million to $13.5 million in stock grants to four executive vice presidents - Neal Cohen, J. Timothy Griffin, Philip Haan and Andy Roberts. The airline said that its compensation committee has not yet finalized the specific amounts per executive.

The stock awards come at a time when executive compensation is a hot topic at Northwest. Last year, the Eagan-based airline achieved $1.4 billion in annual labor costs cuts from employees. Union groups say their have taken wage, benefit and other cuts of up to 40 percent. The company plans to distribute about $1.6 billion to its more than 30,000 employees in claims, profit sharing and incentive awards through 2010.

The latest executive compensation is part of a larger management equity plan that Eagan-based Northwest detailed in March, which calls for 4.9 percent of stock in the newly reorganized Northwest to be awarded to about 400 company officers and directors.

Northwest says the 4.9 percent management equity plan is lower than the 8.9 percent of equity held by management before the airline filed for Chapter 11 bankruptcy in September 2005, United Airlines' post-bankruptcy plan (8 percent) and US Airways' post-bankruptcy plan (6.25 percent).

The company says it is also below the average held by management at Fortune 200 companies (8.5 percent).
Northwest said today in a statement that the compensation is key for the airline to recruit and retain "top-tier" management. Since 2005, Northwest said about 25 percent of its officers have left the company for higher-paying jobs at other companies - most of them outside of the airline industry.

 

[tech2101]

If people don't like the size of the management compensation packages, then they need to start giving a damn as to who gets on the BOD, which approves the packages. Complaining about the packages after the fact does little to move the ball forward for anyone.

Look here:

http://www.nwa.com/corpinfo/peopl/board/board.shtml

Ray W. Benning, Jr.

Director,
Airline Division of the International Brotherhood of Teamsters

Ray W. Benning, Jr. has served as a board member since April 1999. He has been director of the Airline Division of the International Brotherhood of Teamsters since 1995. Benning served as assistant to the director of the Teamsters Airline Division from 1993 to 1995 and a president of Teamsters Airline Local 2707 from 1985 to 1993.

They sold out in the 1993 concessions to get a coveted seat on the corrupt BOD. This guy had to have voted on the Steenland compansation package. Any guesses on how he voted?...

There is also an IAM and ALPA rep there. Many of us who were members at the time (I was IAM then) were strongly opposed at trading concessions for BOD seats...

 

[groundcontrol]

The company says it is also below the average held by management at Fortune 200 companies (8.5 percent).
Northwest said today in a statement that the compensation is key for the airline to recruit and retain "top-tier" management. Since 2005, Northwest said about 25 percent of its officers have left the company for higher-paying jobs at other companies - most of them outside of the airline industry.[/i]

Pete it truly is a slap in the face and a kick in the pants.

The compensation is key for airlines to retain "top-tier" management??????!!!!!25% have left for higher paying jobs outside the airlines????!!!!

WTF does everyone think is going on with ALL other jobs at the airlines???? Mechanics, F/A's, ground workers, customer service.....these groups are the gutts of the airlines and these employees ALSO have to leave the airline industry if they want higher paying jobs(actually jobs one can make a living wage at)! But does any of these meatheads care about that? NOOOOOOO!

This is so fked up! :rant:
Yea, I'm all broken up 'cause the idiots running the airlines (into the ground) need more money to do so.

Funny how they can bargain in good faith for their own asses! dog eat dog! Those dogs are eating steak and throwing a bone once in a while to their lap dogs...

I'm soooo glad I'm out of the airline business.

 

[avek00]

Look here:

http://www.nwa.com/corpinfo/peopl/board/board.shtml

Ray W. Benning, Jr.

Director,
Airline Division of the International Brotherhood of Teamsters

Ray W. Benning, Jr. has served as a board member since April 1999. He has been director of the Airline Division of the International Brotherhood of Teamsters since 1995. Benning served as assistant to the director of the Teamsters Airline Division from 1993 to 1995 and a president of Teamsters Airline Local 2707 from 1985 to 1993.

They sold out in the 1993 concessions to get a coveted seat on the corrupt BOD. This guy had to have voted on the Steenland compansation package. Any guesses on how he voted?...

There is also an IAM and ALPA rep there. Many of us who were members at the time (I was IAM then) were strongly opposed at trading concessions for BOD seats...

Without personally passing judgement on whether NWA's managers have been properly compensated, I just wanted to make clear that blaming managers for their salaries is not entirely fair, as the compensation packages are approved by the Board of Directors.

 

[Spock]

Without personally passing judgement on whether NWA's managers have been properly compensated, I just wanted to make clear that blaming managers for their salaries is not entirely fair, as the compensation packages are approved by the Board of Directors.

Does anyone know how the ALPO, IAM & Reamster borad members voted?

 

[PurduePete]

Does anyone know how the ALPO, IAM & Reamster borad members voted?

Spock, do you even have to guess how they voted?

BTW, the only union representative on the BOD after the reorganization will be from ALPA (go figure). The NWA website has not been updated with the new-look BOD. I found a recent article showing the new roster here...
http://www.forbes.com/businesswire/feeds/b...20005565r1.html

New Northwest Airlines Board of Directors

Roy Bostock has been a director since 2005. He is a former chairman and chief executive officer of D'Arcy Masius Benton & Bowles Inc., one of the world's leading advertising firms, and is now a principal of Sealedge Investments LLC, a diversified private investment company. Bostock also serves as chairman of the Partnership for a Drug-Free America. He is also a director of Morgan Stanley and Yahoo! Inc.

David Brandon is currently chairman and chief executive officer of Domino's Pizza, Inc. Brandon has served as chairman, chief executive officer and as a manager of Domino's Pizza since March 1999. He was president and chief executive officer of Valassis, Inc., a company in the sales promotion and coupon industries, from 1989 to 1998, and chairman of the board of directors of Valassis from 1997 to 1998. Brandon serves on the boards of directors of the TJX Companies, Inc., Burger King Corporation and Kaydon Corporation.

Mike Durham is president and chief executive officer of Cognizant Associates, Inc., a consulting firm he founded in 2000. Prior to forming Cognizant Associates, Durham served as president and chief executive officer of Sabre, Inc. He has also served as senior vice president and treasurer of AMR and as senior vice president of finance and chief financial officer of American Airlines. Durham serves as the non-executive chairman of the board of Asbury Automotive Group, Inc., and as a director and chairman of the audit committee of AGL Resources, Inc. He is also a member of the boards of Acxiom Corporation, Bombardier, Inc., Culligan International, Hertz Global Holdings and SCI Solutions.

John Engler has been a Northwest Airlines director since 2003. Since 2004, Engler has served as president & chief executive officer of the National Association of Manufacturers. From 2003 to 2004, Engler was president of state and local government and vice president of government solutions for North America for Electronic Data Systems Corporation. Engler served as Michigan's 46th governor for three terms from 1991 to 2003. He also serves on the board of directors of Dow Jones & Company, Universal Forest Products Inc. and Munder Capital Management.

Mickey Foret is president of Aviation Consultants LLP. From September 1998 to September 2002, he served as executive vice president and chief financial officer of Northwest Airlines. From September 1998 to September 2002, he also served as chairman and chief executive officer of Northwest Airlines Cargo Inc., a subsidiary of Northwest Airlines that specializes in cargo transport. He was president and chief operating officer of Atlas Air, Inc. from June 1996 to September 1997 and executive vice president and chief financial officer of Northwest Airlines from September 1993 to May 1996. In addition, Foret has held other senior management positions with various companies including Continental Airlines Holdings, Inc. and KLH Computers, Inc. Foret is a director of ADC, URS Corporation and Nash Finch Company.

Robert Friedman has been a director since 2002. Friedman has served since 1999 as a senior managing director of The Blackstone Group L.P. Since 2003, he has also been chief administrative officer and chief legal officer of Blackstone. Prior to 1999, he was a partner of the law firm of Simpson Thacher & Bartlett LLP. He also serves on the board of directors of Axis Capital Holdings Ltd. and TRW Automotive Holdings Corp.

Doris Kearns Goodwin has been a director since 1997. Goodwin is a historian and author and has received numerous awards, including the Pulitzer Prize in history in 1995 for the book, "No Ordinary Time", and the Lincoln Prize for history in 2006. Her recent historical perspective, "Team of Rivals: the Political Genius of Abraham Lincoln" was on the New York Times best sellers list for 15 weeks. She served as a member of the Harvard University Board of Overseers for a six-year term ending in 2005. She was an assistant to President Lyndon Johnson before spending nearly 10 years as a professor of Government at Harvard University.

Jeffrey Katz has been a director since 2005. Since June 2005, Katz has served as president and chief executive officer of LeapFrog Enterprises, Inc. From 2000 to 2004, he served as chairman, president and chief executive officer of Orbitz Inc. Prior to joining Orbitz, Katz was president and chief executive officer of Swissair Group's Swissair from 1997 until 2000. Prior to April 1997, Mr. Katz spent 17 years at American Airlines in a variety of executive roles including president of the Global Distribution System Division of Sabre Inc.

James Postl is a Houston-based independent director. He served as president and chief executive officer of Pennzoil-Quaker State from 2000 to 2002 and was the company's president and chief operating officer between 1998 and 2000. Prior to that, Postl served as president of Nabisco from 1996 to 1998. He earlier served as president and chief executive officer of Nabisco International and earlier spent 19 years at Pepsico in various management positions. He is also a director of Centex Corporation and Cooper Industries.

Rodney Slater is a partner at the law firm of Patton Boggs LLP, serving as the head of the Public Policy and Transportation Practice Group. From 1997 to 2001 he served as the Secretary of Transportation for the US Department of Transportation. From 1993 to 1996, he was Director of the Federal Highway Administration. He is also a director of Kansas City Southern.

Douglas Steenland has served as a director of NWA Corp. since 2001 and as president and chief executive officer of Northwest Airlines since October 2004. Steenland has served in a number of executive positions since joining Northwest in 1991, including president from April 2001 to October 2004, executive vice president and chief corporate officer from September 1999 to April 2001, executive vice president--alliances, general counsel and secretary from January 1999 to September 1999, executive vice president, general counsel and secretary from June 1998 to January 1999, and senior vice president, general counsel and secretary from 1994 to 1998. Prior to joining Northwest, Steenland was a senior partner at the Washington, D.C. law firm of Verner, Liipfert, Bernhard, McPherson and Hand.

William Zoller has been a director since April 2006. Captain Zoller has been a Northwest pilot for more than 25 years. He previously served as an executive vice president of the Air Line Pilots Association, International (ALPA) from 2000 to 2002, and served as chairman of the Northwest Airlines Master Executive Council of ALPA from 1996 to 2000.

 

[PurduePete]

Here's some more salt in the wound...

http://www.twincities.com/allheadlines/ci_5901871

NWA's departing chairman to get $2 million and lifetime health care coverage

Gary Wilson, the outgoing chairman of Northwest Airlines, will get $2 million when he steps down, the airline disclosed in a bankruptcy court filing.

Wilson, who led a leveraged buyout of Northwest in 1989, has said he will step down when it emerges from bankruptcy next month.

Northwest said it was giving Wilson $2 million in "consideration of the substantial contributions provided by Mr. Wilson to the Debtors during the chapter 11 cases."

Northwest said in the filing late Monday that it would also give Wilson lifetime medical and dental insurance coverage, travel, and reimbursement for up to $75,000 per year to run an office.

Wilson played a key role in helping Northwest avert a bankruptcy filing in 1993. A dozen years later, he drew criticism as he sold millions in stock in the months leading up to the company's September 2005 bankruptcy filing.

Executive pay has generated controversy at the airline in recent weeks when the airline disclosed that Northwest chief executive Doug Steenland would receive more than $26 million to restricted stock and options once the carrier emerges from bankruptcy.

 

[Kev3188]

Unreal...but not suprising at all.... :angry: :angry: :angry:

Business as usual at the Big Red machine.

(sits quietly and waits for Finman to log on to "spin" this latest move)

 

[finman]

Unreal...but not suprising at all.... :angry: :angry: :angry:

Business as usual at the Big Red machine.

(sits quietly and waits for Finman to log on to "spin" this latest move)

No spin here. I've made my position pretty clear when it comes to executive compensation. I just really don't care about stuff like this. I have better things to worry about than how much money somebody else makes. Especially when it is entirely inconsequential and immaterial to the company's finances as a whole.

 

[PurduePete]

No spin here. I've made my position pretty clear when it comes to executive compensation. I just really don't care about stuff like this. I have better things to worry about than how much money somebody else makes. Especially when it is entirely inconsequential and immaterial to the company's finances as a whole.

Except when it concerns the wages of union members...then it's OK for you to worry about how much they are overpaid. :blink:

 

[groundcontrol]

Except when it concerns the wages of union members...then it's OK for you to worry about how much they are overpaid. :blink:

EXACTLY!!!!
Finny, we are so tired of that kissing sound coming from your mouth. Is brown your favorite color?

 

[Spock]

This was from last month in DTW.

DTW Picket

And this was this month in MSP.

MSP picket

 

[finman]

Except when it concerns the wages of union members...then it's OK for you to worry about how much they are overpaid. :blink:

Yes, that would be correct, because their wages have a material impact on the bottom line.

I personally believe that the only class of employees that were truly overpaid were the pilots and the mechanics. Everybody else was earning wages comparable to what could be garnered in non-airline jobs of similar skillsets.

 

[finman]

EXACTLY!!!!
Finny, we are so tired of that kissing sound coming from your mouth. Is brown your favorite color?

Huh? Who am I kissing. I use an alias and and I don't know the kissee, whoever that is, so I'm not sure what good it would do me to bother with the kissing you speak of.

Have you ever considered that it is my personal opinion based on my own logical evaluation of the situation. Just because someone disagrees with you, it doesn't mean they are only doing so for self-advancement or some other nefarious reason. You claim to be a liberal, which I thought meant having an open mind and respecting the views of peoples from diverse backgrounds. You don't need to resort to 3rd grade humor in order to deflect a position that you don't wish to confront head-on. It makes you look very small, which isn't how I presume you wish to be percieved. It begs the question, is green your favorite color?