andymo99

Coulda been a moderator... sounds like a song parody.

I would have posted this reply on its original thread but that option no longer exists. Perhaps I should have started a new topic, according to the FT instructions: [This message has been edited by andymo99 (edited 03-25-2003).]

mikey1003

Maybe Leo will now be able to afford to donate to www.saveskymiles.com

Canarsie

Actually, andymo99, in my opinion, I believe this thread (complete with a moderator song parody already included!) would have been the perfect thread in which to post your response.

It's not too late...

I dislike editing my responses and getting that message below, but I forgot to bold andymo99's name...

[This message has been edited by Canarsie (edited 03-25-2003).]

MileJunkie

Not in case of DL, apparently. Leo's annual salary is pretty generous, ~ $800K.

Robert Leach

I have no problem whatsoever with executives being paid healthy amounts. However, if they're so darned good then pay it to them as salary and quit handing out a "bonus" during a time where financial performance of the company headed by said executives is absolutely atrocious and employees are being furloughed. Paying a "bonus" in view of recent financial performance is akin to calling the cuts in the SkyMiles program an enhancement.

What would the airline's financial performance have to be like before no bonus was paid??

Canarsie

Out of business for at least 10 years?

shadow

Here's the info from the Journal-Constitution. Check out the numbers at the bottom...

Canarsie

Poll:

Who here thinks that Delta could have spent that $17,300,000.00 more wisely?

And on what, specifically???

Edited to ask if perhaps I should start a separate thread pertaining to the above two questions...?

[This message has been edited by Canarsie (edited 03-26-2003).]

LemonThrower

I think executive bonuses should be capped at a fraction of corporate profits. There should be no bonus if there is no profit, and there certainly should be no bonus if there are record losses.

Deltspygt

They just said on CNN that Leo is begging congress/the president for money to help them with costs and they finished the story by saying that Delta paid their executives millions in bonuses last year. Hmm...that's weird isn't it.

Diver90

Payments of bonuses of this scale is deplorable. Approval of this compensation by the BOD appears to be fiscally negligent and a breach of fiduciary responsbility to the shareholders.

I work for a public company. My compensation is X in the form of salary and Y in the form of a bonus that is almost entirely dependent on the achievement of corporate objectives and the attainment of revenue and profit goals.

Why the Delta executives should be granted bonuses AND expect to have their pensions guaranteed is such a non-starter.

A general question: Is this type of activity suitable grounds for a shareholder lawsuit?

Canarsie

If there was ever a reason to boycott Delta, this is it.

I am outraged!

Diver90

From the Delta 2003 Proxy Statement

The Personnel & Compensation Committee members are Edward H. Budd, Chairman,
George M.C. Fisher, David R. Goode and Gerald Grinstein. This committee met seven times during 2002.

EDWARD H. BUDD was Chairman of the Board and Chief Executive Officer of The Travelers
Corporation from 1982 until his retirement in 1993, and was an executive officcer of that company from 1974 through 1993. He has been a director of Delta since 1985. Mr. Budd is also a director of Verizon Communications. He is a member of the American Academy of Actuaries and The
Business Council, and a Trustee of Tufts University. Age 69.

GEORGE M.C. FISHER was Chairman of the Board of Eastman Kodak Company from 1993 until his retirement in December 2000, and served as its Chief Executive Officer from 1993 until
December 1999. Before joining Eastman Kodak Company, Mr. Fisher was an executive officer of Motorola, Inc., serving as Chairman and Chief Executive Officer from 1990 through 1993, and Chief Executive Officer from 1988 to 1990. He has been a director of Delta since 1999. Mr. Fisher is also a director of Eli Lilly & Company and General Motors Corporation. He is Chairman of the National Academy of Engineering, a member of the President's Advisory Committee for Trade Policy & Negotiations, and a member of The Business Council. Age 62.

DAVID R. GOODE has been Chairman of the Board, President and Chief Executive Officer of Norfolk Southern Corporation since 1992, and an executive officer of that company since 1985. He has been a director of Delta since 1999. Mr. Goode is also a director of Caterpillar, Inc., Georgia-Pacific Corporation, Norfolk Southern Railway Company and Texas Instruments, Incorporated. He is a member of The Business Council and The Business Roundtable. Age 62.

GERALD GRINSTEIN was non-executive Chairman of the Board of Agilent Technologies, Inc.
from August 1999 until November 2002. He serves as a strategic advisor to Madrona Venture Fund, a Seattle-based venture fund, and is a principal of Madrona Investment Group, L.L.C., a Seattle-based investment company. He served as non-executive Chairman of Delta's Board of Directors from August 1997 until October 1999. Mr. Grinstein was Chairman of Burlington Northern Santa Fe Corporation (successor to Burlington Northern Inc.) from September 1995 until his retirement in December 1995; an executive officer of Burlington Northern Inc. and certain affiliated companies from April 1987 through September 1995; and Chief Executive
Officer of Western Air Lines, Inc. from 1985 through March 1987. He has been a director of
Delta since 1987. He is also a director of Agilent Technologies, Inc., PACCAR Inc., The
Pittston Company and Vans, Inc. Age 70.

avek00

Mind you, there is one good thing that can come out of all of this: Unions for Delta.

------------------
Thank you for choosing Continental Airlines, a proud member of the SkyTeam Alliance.

Diver90

COMPENSATION OF DIRECTORS

Annual Retainer, Meeting Fees and Transportation Privileges

Directors who are not employees of Delta receive an annual retainer of $25,000, $5,000 of which is paid in shares of Common Stock; $1,000 for each Board and Committee meeting attended; reimbursement for expenses in attending meetings; and complimentary transportation privileges on Delta for themselves and their spouses. The Chairman of each Committee also receives an annual retainer of $7,500. Directors who are employees of Delta are not separately compensated for their service as a director.
Non-employee directors may elect to receive all or a portion of their cash compensation earned as a director in shares of Common Stock. Non-employee directors may also defer their cash compensation to a date they specify, and choose an investment return on the deferred amount from among the investment return choices available under the Delta Family-Care Savings Plan, including the Delta Common Stock Fund which is invested primarily in Common Stock. For
information about the Delta Family-Care Savings Plan, please see pages 3 through 4 of this proxy statement.

Annual Stock Option Grant

Non-employee directors receive an annual award of non-qualiÑed stock options which in prior years had a Black-Scholes value of $40,000 on the grant date. In 2002, however, the Board determined it was appropriate to grant each non-employee director a stock option to purchase the same number of shares as the stock option granted to each eligible director in 2001, even though this reduced the value of that annual award to approximately $16,100.

During 2002, each non-employee director received a stock option to purchase 3,355 shares of Common Stock at a price of $10.53 per share, the closing price of the Common Stock on the New York Stock Exchange on the grant date. These stock options generally become exercisable with respect to 25% of the covered shares on each of the first four anniversaries of the grant date, and expire on the tenth anniversary of the grant date. Upon the occurrence of a Change in Control (as defined), the stock options immediately vest for their remaining terms.

Other Compensation

Non-employee directors who first join the Board after January 1, 2003 will receive $10,000 of Common Stock when they are initially elected. Non-employee directors who Ñrst join the Board after October 24, 1996 also receive a deferred payment of $6,300 during each year in which they serve as a director. The deferred amount earns an investment return equivalent to the investment return on the Delta Common Stock
Fund, and will be paid to directors after they complete their Board service.

Directors who first joined the Board on or before October 24, 1996, and who retire from the Board, may be elected advisory directors for a term which varies depending on the director's term of Board service and age at retirement. Advisory directors receive an annual retainer equal to the annual retainer paid to non-employee directors at the time of their retirement. On October 24, 1996, the Board discontinued the advisory director program for all future directors who were not members of the Board on that date.
Non-employee directors who retire from the Board at or after age 68 with at least five years of service as a director, directors who serve until their mandatory retirement date, and lifetime advisory directors, receive during their lives complimentary transportation privileges on Delta for
themselves and their spouses.