Puppenstein

I think it is reasonable, but agree with others that it would be great if his increase was in Sky Miles. After all, they may not be worth much, but they never expire. I wonder if he still sits at CE Woolman's desk?

nabco

+100 ^

skchin

We can toast to that at the lounge.

HongKonger

It isn't. But executive pay has skyrocketed in the past couple of decades while real wages for front line workers have stagnated or even dropped during the same period. The ratio of executive pay to front line worker pay is at levels not seen since the days of the robber barons. It's part of what has destroyed the American middle class.

Leave aside whether or not this is acceptable (it isn't). Let's ask whether it makes sense. If that level of pay is justified, Richard Anderson must be a better executive than Ford, Rockefeller, Carnegie and their peers. I assure you he isn't.

HongKonger

But do they need to make 300-500 times more?

Yeah, it's "silly" to be concerned about regular workers. If they want a living wage they should just become CEOs.

pbarnette

It would be more accurate to say that pay for rare skills has skyrocketed relative to those positions requiring less rare skills.

This isn't OMNI, but better explanations are to be found in looking at household compositions and the impact of increasing competition (read: not locking out women and minorities) in the workplace.

Are you suggesting that Richard Anderson has accumulated more wealth than Ford, Rockefeller, and Carnegie did? Aren't the incentives required to be offered to professional CEOs quite different from those required to attract the entrepreneur? Frankly, I don't think you could be more wildly off-base with a comparison than this one.

Zomba

+1

pbarnette

Define "need". I'm quite sure that DL "needs" to offer a pay package similar to what they are providing to attract and retain a CEO of the caliber of RA.

Are you suggesting that DL's employees don't make a living wage?

Puppenstein

I think most of us can't even imagine the responsibilities you have as a CEO or whatever the leader of a company chooses to call themselves. I feel that they all should be paid more than those below them. It can't be easy to deal with all of that and no matter who it is, they should be compensated for that. I can never understand the comparisons that mention that employees should be paid more, etc. because none of us, unless we are CEO's have that level of responsibility or constant pressure from investors, employees and customers. Not everyone can be a CEO and perhaps that is a good thing. I just feel that sometimes there are certain things within a company that the CEO needs to be more aware of, and at Delta, I think the rewards system sucks. Perhaps if he had to get paid in those instead of stocks options or just additional cash, the program would be a bit better.

Evidently, he needs to go on Undercover Boss...if that show is still being filmed.

DL2SXM

I believe they get bonuses. Not exactly sure what its called. Unfortunately, its nothing close to what the CEO gets but thats the way it is with every company. It is what it is and its been that way for a loooong time. If he front line employees want the kind of bonus that Mr. Anderson is getting, then they need to consider being a CEO of an airline.

There have been plenty of years when the DL CEO refused bonuses because the company wasn't making money. Now they are. Good for Mr. Anderson. IMHO, he has earned it. As for the employees, they don't get paid enough for the work they do and for what they've been through. Unfortunately, thats never going to change.

DL2SXM

There have been plenty of CEO's of companies, including DL, that have made disasterous decisions. Now, they have the midas touch. The CEO must be rewarded as should the employees, and they are.

Puppenstein

Not sure what your point is? I hardly think that employees get well rewarded that are a part of a union...after all, you are evenly rewarded regardless of if you do your job well or not, but my understanding is that Richard Anderson is not part of the union. Lucky guy.

itsaboutthejourney

LOL ^^^^^^^^^^

indufan

And that is exactly why he does. If he makes the call on this and they make an extra $4,000,000 and it cost them $1,000,000 is SkyClub memberships then it is the right call.

enconline

Ultimately I agree that his compensation is in line with the performance of the company and the stock price, however I wish that they were a little more transparent/honest about the way in which they do it (although for PR reasons I understand that they cannot).