View Poll Results: Do you believe that Richard Anderson deserves and has earned increased compensation?
Yes.
41
33.61%
Conditionally yes — and I will explain why in this discussion.
10
8.20%
No.
66
54.10%
I am not sure and undecided about this question.
5
4.10%
Voters: 122. You may not vote on this poll
Pay Package for Richard Anderson Boosted by 42 Percent
May 15, 2013, 11:24 pm
#1
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Pay Package for Richard Anderson Boosted by 42 Percent
The following quotes are from an article posted in USA Today on May 1, 2013:
The price per share of Delta Air Lines stock has increased by approximately 50 percent and reached a 52-week high of $19.43 per share today — closing in on its all-time post-bankruptcy high of $21.40.
Do you believe that Richard Anderson deserves and has earned the compensation he has received?
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Richard Anderson's compensation rose to almost $12.6 million, up from $8.9 million in 2011, according to an Associated Press calculation based on an SEC filing Tuesday.
Delta paid Anderson $2.7 million in cash as part of an annual incentive plan, up from about $1 million a year earlier. It also added $2 million worth of stock options in 2012.
Delta awarded him $7 million in stock in both years.
His base salary rose 9% to $652,083. Delta said it was Anderson's first base salary increase since he joined the company as CEO in 2007.
Delta awarded him $7 million in stock in both years.
His base salary rose 9% to $652,083. Delta said it was Anderson's first base salary increase since he joined the company as CEO in 2007.
Do you believe that Richard Anderson deserves and has earned the compensation he has received?
Please participate in the poll.
Thank you.
May 16, 2013, 12:25 am
#4
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his job entails making the company, its shareholders, and its tens of thousands of employees money. He has done just that, and at the same time, is leading the pack. His job doesn't entail giving away the shop to medallion members. Like it or not, certain things needed to be tightened up. He has earned every cent of that money.
May 16, 2013, 12:42 am
#5
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his job entails making the company, its shareholders, and its tens of thousands of employees money. He has done just that, and at the same time, is leading the pack. His job doesn't entail giving away the shop to medallion members. Like it or not, certain things needed to be tightened up. He has earned every cent of that money.
If you (not the OP) the collective "you" were in charge of a company that increased its value by 50% under your leadership don't you think you would be personally entitled to reap some of that benefit?
May 16, 2013, 12:58 am
#6
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...but will that increased value be retained and perhaps further increase in the long term?
May 16, 2013, 2:41 am
#7
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A good portion of the pay are options that can't be exercised for some time (though they appear as 'income' to the casual observer). If the share prices decline or stay flat, his compensation is much more modest than it appears at first glance (i.e., that $12M could easily become much less if the company struggles). Granted, I would trade pay packages with him in a second 
May 16, 2013, 6:00 am
#10
Join Date: Mar 2013
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his job entails making the company, its shareholders, and its tens of thousands of employees money. He has done just that, and at the same time, is leading the pack. His job doesn't entail giving away the shop to medallion members. Like it or not, certain things needed to be tightened up. He has earned every cent of that money.
May 16, 2013, 6:34 am
#11
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his job entails making the company, its shareholders, and its tens of thousands of employees money. He has done just that, and at the same time, is leading the pack. His job doesn't entail giving away the shop to medallion members. Like it or not, certain things needed to be tightened up. He has earned every cent of that money.
He has brought DL through the merger, improved shareholder value and air travel is still a better deal in relative terms than it was 30 years ago.
Those who want more freebies, should be booking on Eastern or TWA. Just tough getting their CS line to answer.
May 16, 2013, 11:22 am
#12
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May 16, 2013, 1:09 pm
#13
Join Date: Feb 2011
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In an absolute sense, yes RA deserves most, if not all, of his pay increase/bonus. He has produced value for the owners of Delta, namely the stockholders. That is his job.
Now the means of how he has produced value -- nickel-and-diming people, having Worst In Class(TM) IT, making elite status be worth less and less, etc. -- is open for debate.
Now the means of how he has produced value -- nickel-and-diming people, having Worst In Class(TM) IT, making elite status be worth less and less, etc. -- is open for debate.
May 16, 2013, 1:19 pm
#14
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I think such an increase in compensation is too much. It's not just Dick who is responsible for Delta's performance. Sure he deserves a raise, but at the same time, shouldn't that wealth be shared with fellow employees? How many outside of DL HQ received a pay raise that approaches 40%?
May 16, 2013, 1:41 pm
#15
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I think such an increase in compensation is too much. It's not just Dick who is responsible for Delta's performance. Sure he deserves a raise, but at the same time, shouldn't that wealth be shared with fellow employees? How many outside of DL HQ received a pay raise that approaches 40%?
How many millions do you need anyway?