Feb 13, 2008 5:17 pm US/Central
Delta: CEO Won't Take Bonus If Airline Merges
ATLANTA (AP) ―
The chief executive of Delta Air Lines Inc. has offered to give up any enhanced or accelerated compensation that he would be otherwise entitled to if the nation's No. 3 carrier combines with another airline.
Delta is reviewing strategic options, including potential consolidation transactions. It has been discussing a combination with officials from Northwest Airlines and United Airlines. Of late, a deal with Eagan, Minn.-based Northwest has appeared more likely than a deal with United, a unit of Chicago-based UAL Corp.
Atlanta-based Delta has not commented in recent weeks on the status of any merger talks.
In a regulatory filing Wednesday, Delta said its chief executive, Richard Anderson, voluntarily offered on Feb. 7 to waive the change in control provisions of his compensation arrangements.
"Mr. Anderson volunteered to give up any enhanced or accelerated compensation that he would otherwise be entitled to if any consolidation transaction currently under review is completed," the filing said.
It added that the personnel and compensation committee of Delta's board of directors accepted Anderson's offer. The filing did not say how much money Anderson would potentially be giving up.
Later Wednesday, Northwest said CEO Doug Steenland would give up some of his change-of-control payout -- if he stays with the merged airline "in an executive capacity."
In that scenario, Steenland "will waive any acceleration of compensation that would be triggered by the merger, including the acceleration of vesting dates for restricted stock and stock options," Northwest spokeswoman Tammy Lee said in a written statement. The statement said nothing about Steenland's pay if he leaves after a merger, or if he stays as a board member but not an executive.
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