Delta CEO Mullin gets $13 mln pay package for 2002

Derg

Cap, Roci
Staff member
Interesting how a psuedo-symbolic 10% pay cut nearly doubles his take home pay...


Meanwhile, my stock options are worth a whopping -$21,936.85. Yup, I'd have to cut a check!


Delta CEO Mullin gets $13 mln pay package for 2002
March 25, 2003 11:10:44 (ET)

NEW YORK, March 25 (Reuters) - Delta Air Lines Inc.
(DAL,Trade), which last year posted a $1.27 billion net loss, in
2002
awarded Chairman and Chief Executive Leo Mullin a pay
package worth about $13 million, more than twice what he
received in 2001.


Much of the package was in the form of options to buy 963,000
shares of stock, worth about $8.21 million at the time of the grant
dates, according to a proxy statement filed with the U.S.
Securities and Exchange Commission. Mullin became CEO of
the No. 3 U.S. carrier in August 1997 and chairman in October
1999.

Mullin last year also received a salary of $795,000, a $1.4
million bonus, $2.03 million of restricted stock, $456,066 of long-
term incentive payments, and $84,834 of other compensation,
according to the proxy filing.

Mullin's pay package totaled about $6.21 million in 2001,
including $4.02 million in stock options but no bonus, Delta's
proxy filing from last year showed.

Delta's (DAL,Trade) compensation committee determined
Mullin's 2002 pay package after considering his performance
and executive compensation at other big U.S. airlines, among
other factors, the filing said.

Delta, which is based in Atlanta, said on Monday it is temporarily
cutting about 12 percent of flights due to reduced passenger
demand because of the Iraq war.

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


In its annual report, also filed with the SEC on Tuesday, Delta
said it had about $1.9 billion of cash and equivalents as of Feb.
28. It said it expects 2003 operating cash flow to be sufficient to
fund operations and non-fleet capital expenses.

Delta's proxy filing also showed that Chief Operating Officer
Frederick Reid received a $4.52 million pay package in 2002,
including $2.23 million in stock options, while Chief Financial
Officer M. Michele Burns received about $3.1 million, including
$1.59 million in stock options.
 

Eagle

New Member
you know.. I am a HUGE fan on paying CEOs big$, but WTF??? when your industry and company are in the dumper, and you ahve been laying off people ..

come the f on...
 

pilot602

If specified, this will replace the title that
Hey, I'm sure he earned every penny of the "raise" that could have, instead, very easily gone to save a few furloughs or pad the bottom line a little bit.

Leave the poor man alone - running a big scary company like that is hard work and without big money like that to attract "top quality" execs no one would ever do that job!

Never mind he allowed the company to post over a billion dollar net loss - I'm sure it was just an accident and he didn't mean it.
 

ready2fly

Well-Known Member
I'm obviously not a business major by my upcoming comment, but:

How does a CEO receive a 10% RAISE when the company he "runs" is laying off employees?

Is that his "attaboy" for watching the company's bottom line? "You saved us Five million ... so here's Ten!"

Makes no sense to me.
 

pilot602

If specified, this will replace the title that
[ QUOTE ]
Is that his "attaboy" for watching the company's bottom line? "You lost us 1.27 Billion ... so here's Ten million!"

[/ QUOTE ]

Corrected.
 

Virusss

New Member
All I can say is

But I wouldnt be mad if this was an original founder but he is not the original founder of the company. The way I see it is that the Original founder and Ceo starts the whole company up. He does so much cr*p that is almost unbelievable. Meetings, loans, risk of loosing your whole life assets. But then again they are the ones the make the bussiness come up. So its ok then. But when someone doesnt start the business and even makes it take a noise dive thats what gets me pissed off.
 

n77j

Well-Known Member
Doug- i was just about to post it after i got that news. I have nothing more to say other than-dictators are running the airline industry!
 

tonyw

Well-Known Member
And remember, Doug, the pilots are overpaid, if you listen to the media and the idiotic talking heads!
 

blee256

Well-Known Member
Just to play devils advocate....... United went bankrupt in 2002, American might file for chapter 11 in a couple months. But I havent heard anything about Delta filing. So he must be doing something right. right?!

-Brian
 

vickiepp

New Member
Does the airline industry REALLY think the US gov. is going to bail them out when examples like this are available???

If SWA and JBLU can create a healthy bottom line AND pay their people descent AND have folks clammering (is that a word?) to work for them, then.....

WHY do the 'majors' think they deserve a govt. bail??

I mean, I'm no business major, but......

WTF???
 

pilot602

If specified, this will replace the title that
[ QUOTE ]
So he must be doing something right. right?!

[/ QUOTE ]

Delta may not be on the brink of bankruptcy but they

[ QUOTE ]
Delta Air Lines Inc.
(DAL,Trade), which last year posted a $1.27 billion net loss, in
2002

[/ QUOTE ]

And, UAL gave their new CEO a $3 million sign-on bonus only weeks before they went TU.

U.S. Air paid their top three execs a combined 35 million days before they filed Ch. 11 and are now trying to dissolve the remaining pilots' (the most junior of which has 17 years with the company) pension plan.

(edited to remove my "new" math argument)
 
G

Guest

Guest
[ QUOTE ]
How does a CEO receive a 10% RAISE when the company he "runs" is laying off employees?


[/ QUOTE ]

Let me preface this by saying Leo is not the most respected executive in the Atlanta area. CEO compensation packages can be very confusing to say the least. My guess is that when he took his 10% pay reduction in 2001, he had some sort of clause that he would be givin' X amount of stock options in 2002. I think that is where half of his 2002 pay package lies. That being said, it is in his utmost interest to do something to turn the company around and start showing some sort of profit to increase the stock price. On the flip side, if Delta continues to slip further and further in the red, and god forbid have to file chapter 11, that stock he has will be worthless. But, just becasue it is in his contract to receive said funds doesn't mean he has to accept it. Thus, I refer you back to my first statement, not really respected.
 

blee256

Well-Known Member
[ QUOTE ]


Take a look at Delta's figures though - that $13 million pay package represents about half of the .27 in that $1.27 billion loss - and if you add up the pay packages for the other top execs they fill out the other half. So if you took the CEO and top exec pay out of the picture Delta "only" lost $1 billion. Think about that for a minute.

[/ QUOTE ]

the .27 is 270 million not 27 million. 1 billion is 1,000 million. so 1.27 billion is referring to 1,270,000,000. not 1,027,000,000.

Wow when you write it like that, that number looks so much bigger.

-Brian
 

davetheflyer

New Member
It just warms my heart to know that Leo Mullin won't have to forgo that new Mercedes or mansion in spite of Delta's troubles. Heck, he can afford a private jet, he won't even have to patronize his own company!

It's interesting how all of these CEOs can still find time to line their pockets while the world comes crashing down around them. This is especially true of the "hired guns" like Glenn Tilton who come and basically shut a company down.

I personally think that executives ought to get a base salary of a million or two, then anything above that should be tied to the company's performance.
 

pilot602

If specified, this will replace the title that
[ QUOTE ]
Wow when you write it like that, that number looks so much bigger.

[/ QUOTE ]

Damnit. 4 + 4 is still 18, though, right?


Doh!
 

pilot602

If specified, this will replace the title that
[ QUOTE ]
I personally think that executives ought to get a base salary of a million or two, then anything above that should be tied to the company's performance.

[/ QUOTE ]

Uhhhhh, too logical and fair Dave. It'll never work/happen.
 

HankHill

New Member
[ QUOTE ]
[ QUOTE ]
I personally think that executives ought to get a base salary of a million or two, then anything above that should be tied to the company's performance.

[/ QUOTE ]

Uhhhhh, too logical and fair Dave. It'll never work/happen.


[/ QUOTE ]

well said.
 
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