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 16, 2013, 1:53 pm
#16
Suspended
Join Date: Jun 2009
Programs: Delta skymiles DM + 1MM
Posts: 8,144
he does share the wealth. Don't employees get a check every quarter or every year based on how much profit DL made?? Plus, with over 75,000 employees world wide, lets say he divided up $10,000,000 between all 75,000 employees, that would leave each employee with $133.33.
May 16, 2013, 5:24 pm
#18
Join Date: Apr 2013
Posts: 337
1. I haven't exactly seen a bunch of Delta employees around here clamoring for more pay. It isn't like American or anyone else would pay them more. If you want to make an argument that he should do it out of the goodness of his heart, please see # 2....
2. The "wealth" doesn't belong to him anyway. It belongs to the shareholders, the people who actually invested their money.
2. The "wealth" doesn't belong to him anyway. It belongs to the shareholders, the people who actually invested their money.
May 16, 2013, 6:04 pm
#19
FlyerTalk Evangelist
Join Date: May 2008
Location: CHA, MAN;
Programs: Delta DM 1 MM; Hz PC
Posts: 11,169
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.
Last edited by GRALISTAIR; May 17, 2013 at 8:05 am
May 17, 2013, 3:09 am
#20
Suspended
Join Date: Dec 2009
Location: HKG
Programs: DL FO, UA, AA, AsiaMiles, SPG, HHonors
Posts: 7,982
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 17, 2013, 3:29 am
#21
FlyerTalk Evangelist
Join Date: May 2001
Location: Southern California/In the air
Programs: DL
Posts: 10,382
Actually, as CEO comp packages go, this one is actually pretty decent and reasonable. The cash portion, which I would consider fair for a CEO of a company the size of Delta, is dwarfed by the stock options and stock. Main question I have is the period the stock is restricted as to sale; if it's a decent time period, it can be a good incentive for a CEO to take the long view in strategic thinking. It's very easy to make decisions that temporarily bump up a stock's price and increase profitability in the short term. It's quite another to maintain that performance over a longer timeframe, say 5 to 7 years.
May 17, 2013, 3:31 am
#22
FlyerTalk Evangelist
Join Date: May 2001
Location: Southern California/In the air
Programs: DL
Posts: 10,382
May 17, 2013, 5:27 am
#23
Join Date: Nov 2009
Posts: 1,601
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%?
2) before anyone says it though, 1 40% increase for all 80,000 employees would bankrupt the company. Thus i propose they just give employees the 5th week of vacation back.
See, saves Delta money and makes employees happy.
I tried.
May 17, 2013, 5:31 am
#24
Join Date: Nov 2009
Posts: 1,601
Having said that, Delta did just give its employees a fairly big raise. (ie, it didn't just cover cost of living increase). I would bet most employees are pretty happy. (but i don't think away would turn down 40% increases, even if the bulk of it was long term stock options.)
May 17, 2013, 5:32 am
#25
Join Date: Nov 2006
Programs: Delta, Hyatt-Plat, Priority Club-Plat, Hilton-Gold
Posts: 1,271
Delta has been very, very generous to its employees through recent raises and profit sharing, so I doubt you'll find many employees who are truly dissatisfied at their overall compensation package. Sure, who wouldn't want to make more money, but that's different than being a disgruntled employee.
Delta is taking a very, IMO, long term approach here. If delta were to lavish it employees with huge, huge raises every year that the company does well, it would quickly make costs (ex-fuel CASM) increase to unsustainable levels. The next time the company/industry goes through a very difficult period, then Delta would be a in a heap of trouble.
So with R.A.'s package now, rewarding him with additional stock options/bonuses now, contingent on when the company is successful, and then pulling them later if performance suffers, is MUCH easier to do than enforce pay cuts to all employees.
Just my two cents.
Delta is taking a very, IMO, long term approach here. If delta were to lavish it employees with huge, huge raises every year that the company does well, it would quickly make costs (ex-fuel CASM) increase to unsustainable levels. The next time the company/industry goes through a very difficult period, then Delta would be a in a heap of trouble.
So with R.A.'s package now, rewarding him with additional stock options/bonuses now, contingent on when the company is successful, and then pulling them later if performance suffers, is MUCH easier to do than enforce pay cuts to all employees.
Just my two cents.
Last edited by DiscoPapa; May 17, 2013 at 5:54 am Reason: 2 cents!
May 17, 2013, 5:50 am
#26
Join Date: Nov 2004
Location: TPA or In Flight
Programs: DL PM, 1MM
Posts: 671
After seeing his performance on several preflight videos, I cannot in any way believe that he is responsible for any success at Delta...even if he has a big desk to sit behind.
How these people get to be CEOs is far beyond my comprehension.
-=tg=-
How these people get to be CEOs is far beyond my comprehension.
-=tg=-
May 17, 2013, 6:07 am
#28
Join Date: Jul 2011
Location: NYC
Programs: Delta PM, Starwood Gold, JetBlue, Marriott Silver, Hilton Honors
Posts: 210
What do you think the company is realizing on the bottom line with their new alcohol policy in the SC? $4MM?? if so, then he doesn't deserve the raise.
May 17, 2013, 7:43 am
#30
Suspended
Join Date: Sep 2005
Location: SEA
Programs: UA Silver, BA Gold, DL Gold
Posts: 9,779
Perfectly reasonable given the performance of the company and his standing in the industry.
All the discussion of the employees is, frankly, silly. CEOs make more money than FAs or pilots. I think that fact surprises nobody.
All the discussion of the employees is, frankly, silly. CEOs make more money than FAs or pilots. I think that fact surprises nobody.