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04-09-2007, 02:15 AM | #1 | |
Quarry Creeper Join Date: Aug 2006 Location: So*Cal
Posts: 226
| Wish my boss did this for me...
Heard this on the news a while back. Researched the article... A refreshing refusal
It is even more distasteful when insiders use the bankruptcy process to enrich themselves, as happened last year at United Airlines. Some 400 executives walked away with 8% of the newly reorganized company in the form of restricted shares worth about $ 400 million. (They originally wanted 15% of the company.) CEO Glenn Tilton, a relative newcomer to United and the airline industry, got shares worth more than $40 million. This bounty was made possible in part by pay cuts in the range of 10% that United workers had agreed to. All of which is why the decision by Delta Air Lines CEO Gerald Grinstein to forgo the $10 million he would be due under a restructuring plan at his company is all the more commendable. Grinstein said Monday that his money should go to scholarships and hardship assistance for struggling employees and retirees. Grinstein, 74, who is set to retire this summer, gave voice to something that has been painfully obvious to shareholders recently. Executive compensation, he said, has "gotten out of control" and become a "salary derby." His decision, along with Delta's more reasonable plan to have 1,200 executives share 2.4% of the new company when it emerges from Chapter 11, could help to keep the United deal from becoming an accepted standard. The business of executive self-enrichment can take considerable creativity in the airline industry, which has been beset by big losses and languishing stock prices. So it's not surprising to see some executives try to use the reorganization process to line their pockets. But it's refreshing that at least one airline CEO has recognized it as unseemly — and has provided a welcome antidote to unfettered greed. | |
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04-09-2007, 09:00 AM | #2 |
I'm a stupid C U N T! Join Date: Jun 2005 Location: In the Garage!
Posts: 4,307
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nice to see someone with more money then they need, give something back to the people who earned it for him
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