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- Jun 8, 2004
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Posted on Fri, Nov. 05, 2004
Northwest execs get stock boost
Associated Press
MINNEAPOLIS - The top five executives at Northwest Airlines Corp. have been awarded $3.7 million in stock.
Among them was Northwest's new CEO and president, Doug Steenland, who received 150,000 shares of restricted stock, with an estimated value of $1.4 million based on Monday's closing share price of $9.22.
The stock awards were disclosed in a filing this week with the Securities and Exchange Commission. They came ahead of Friday's approval by Northwest pilots of a two-year contract that will reduce their pay by 15 percent and save the company $265 million a year.
Northwest executives who were awarded the restricted stock recently got salary increases to reflect new responsibilities. But the raises will be short lived, as implementation of the pilots' contract will trigger substantial pay cuts for executives as well.
The executive salary reductions will be taken off higher base salaries that recently went into effect.
Northwest spokesman Bill Mellon said pilots union leaders were briefed on the pay increases and stock grants for senior executives before pilots started voting on the new contract.
The five executives who received the stock can't immediately convert it to cash. In recent years, Northwest's board has been awarding restricted stock that vests over multiple years.
"The restricted stock grant program is designed to focus our senior management on the long-term success of Northwest Airlines and to align the executives' interests with those of the company's shareowners," Mellon said.
Northwest has lost more than $2 billion on its operations since early 2001. The company is attempting to cut its labor costs by $950 million a year.
Competitors such as American Airlines, US Airways and United Airlines already have reduced labor costs.
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On the Net: Northwest Airlines: http://www.nwa.com
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Information from: Star Tribune, http:// WWW.STARTRIBUNE.COM
I'm sure AMFA won't puit up with this! Or will they?
Northwest execs get stock boost
Associated Press
MINNEAPOLIS - The top five executives at Northwest Airlines Corp. have been awarded $3.7 million in stock.
Among them was Northwest's new CEO and president, Doug Steenland, who received 150,000 shares of restricted stock, with an estimated value of $1.4 million based on Monday's closing share price of $9.22.
The stock awards were disclosed in a filing this week with the Securities and Exchange Commission. They came ahead of Friday's approval by Northwest pilots of a two-year contract that will reduce their pay by 15 percent and save the company $265 million a year.
Northwest executives who were awarded the restricted stock recently got salary increases to reflect new responsibilities. But the raises will be short lived, as implementation of the pilots' contract will trigger substantial pay cuts for executives as well.
The executive salary reductions will be taken off higher base salaries that recently went into effect.
Northwest spokesman Bill Mellon said pilots union leaders were briefed on the pay increases and stock grants for senior executives before pilots started voting on the new contract.
The five executives who received the stock can't immediately convert it to cash. In recent years, Northwest's board has been awarding restricted stock that vests over multiple years.
"The restricted stock grant program is designed to focus our senior management on the long-term success of Northwest Airlines and to align the executives' interests with those of the company's shareowners," Mellon said.
Northwest has lost more than $2 billion on its operations since early 2001. The company is attempting to cut its labor costs by $950 million a year.
Competitors such as American Airlines, US Airways and United Airlines already have reduced labor costs.
---
On the Net: Northwest Airlines: http://www.nwa.com
---
Information from: Star Tribune, http:// WWW.STARTRIBUNE.COM
I'm sure AMFA won't puit up with this! Or will they?
