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Pay Package for Richard Anderson Boosted by 42 Percent

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

Old May 17, 2013, 12:51 pm
  #46  
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Originally Posted by 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).
These trends pre-date Anderson by years. After Leo flubbed, they learned to embrace incrementalism, and they're getting better at it. Most of what happens on Virginia Avenue would happen no matter who's at the top.

Anderson managed an almost flawless merger in sharp contrast to the debacle (perhaps about to be repeated ) at US and the not-nearly-as-bad-but-still-fuzzy comingling at Uninental, and he's managed to keep the company on steady course since.
MikeMpls is offline  
Old May 17, 2013, 5:22 pm
  #47  
 
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I think he earned it -- after all, that increase was negotiated with the board of directors just after Delta left bankruptcy.

And, since I'm not a shareholder, his compensation is really none of my d*mn business. I suspect that is true for most of the posters here, yet I'm sure we'll see the usual whining from folks who can't add the same amount and kind of value that Mr. Anderson can and does.
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Old May 17, 2013, 6:27 pm
  #48  
 
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Maybe he can afford to finally get his own desk
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Old May 29, 2013, 12:38 pm
  #49  
 
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Originally Posted by DL2SXM
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.
That's fine if you subscribe to the standard Wall Street take of "success" and Airline Carrier credo of "...everyone at the top is cared for..." Is Delta anymore successful today than they were 10 years ago? Just because two powerhouse carriers merged means that the CEO benefits? It's just like the days of VPs and CEOs going from Carrier to Carrier and leaving the carnage in their wake. It's the same old measuring stick with no "value add" provided. Shareholder value is a very temporary milestone.

Ultimately, what wins the war is safety record (one "Oh Sh8t" will wipe out 10 "Attaboys"), quality of the product, and repeat customers outside of the stickiness of their frequent flyer perks. Increasing "revenue," not only the bottom line is what will be most important.

The fact that Delta and all the other airlines had hedged fuel costs for the past two years means that their bottom line could look stellar. Beating the unions and other workers compensation to death may make the bottom line look stellar. With the added revenues of charging for just about everything and all the cost savings could make the bottom line look stellar.... But how do you make that last if fuel costs rise, there are not many more revenue opportunities in a flight to milk, and the employee base is not all that happy... So, you Skymile fans -- how is Delta treating you these days putting aside the attention grabbing shiny card?

I can tell you this, their price point is better than my preferred carrier and for the most part, their on-time performance seems to be no better or worse and their safety record is on par. But I still use my preferred carrier more often because it provides me leverage when I need it most. So, yes... Elite status does play a role in revenue guarantees. And I don't mean upgrades... I mean quality of treatment in good times and in bad times. And it is of HUGE value in bad times.

So, I say the jury is still out for a 42% increase in compensation while the people in the trenches see less than cost of living increases... if that.

AGE
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Old May 29, 2013, 1:45 pm
  #50  
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Originally Posted by oldAGE
That's fine if you subscribe to the standard Wall Street take of "success" and Airline Carrier credo of "...everyone at the top is cared for..." Is Delta anymore successful today than they were 10 years ago? Just because two powerhouse carriers merged means that the CEO benefits? It's just like the days of VPs and CEOs going from Carrier to Carrier and leaving the carnage in their wake. It's the same old measuring stick with no "value add" provided. Shareholder value is a very temporary milestone.

Ultimately, what wins the war is safety record (one "Oh Sh8t" will wipe out 10 "Attaboys"), quality of the product, and repeat customers outside of the stickiness of their frequent flyer perks. Increasing "revenue," not only the bottom line is what will be most important.

The fact that Delta and all the other airlines had hedged fuel costs for the past two years means that their bottom line could look stellar. Beating the unions and other workers compensation to death may make the bottom line look stellar. With the added revenues of charging for just about everything and all the cost savings could make the bottom line look stellar.... But how do you make that last if fuel costs rise, there are not many more revenue opportunities in a flight to milk, and the employee base is not all that happy... So, you Skymile fans -- how is Delta treating you these days putting aside the attention grabbing shiny card?

I can tell you this, their price point is better than my preferred carrier and for the most part, their on-time performance seems to be no better or worse and their safety record is on par. But I still use my preferred carrier more often because it provides me leverage when I need it most. So, yes... Elite status does play a role in revenue guarantees. And I don't mean upgrades... I mean quality of treatment in good times and in bad times. And it is of HUGE value in bad times.

So, I say the jury is still out for a 42% increase in compensation while the people in the trenches see less than cost of living increases... if that.

AGE
Here here!

Please post more.
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Old May 29, 2013, 2:03 pm
  #51  
 
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I think he deserves a raise, but it would be great if shareholders and customers both could be happy. There has to be a happy median. Sadly, it's mostly shareholders that are happy
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Old May 30, 2013, 12:24 pm
  #52  
 
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Originally Posted by MR_MAMA
I think he deserves a raise, but it would be great if shareholders and customers both could be happy. There has to be a happy median. Sadly, it's mostly shareholders that are happy
I'm not sure why everyone here is automatically assuming the employees are unhappy.

Are you an employee of the company or are you just taking a stance based on assumption that because the CEO received a drastic compensation package that must mean it's at the employees' expense?

Note: I am not singling you out directly, yours was just the most recent post.

If the employees are so unhappy, they would unionize. Those that are in unions would strike. But they haven't and they're not.

If a company can act in harmony with its employees, the last thing they need is a union. And for the most part, it appears management and its employees are doing just that.

Just a final note. Check out employee reviews of Delta on glassdoor.com - The first reviews ALL mention Delta profit sharing, AND a 7% 401k employee contribution match under pros to the company.

Discretion: I am a Delta shareholder, despite it being pretty much nuts to hold airline stocks these days, but you bet he deserves that salary bump.
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