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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 16, 13, 12:24 am
  #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:
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.
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?

Please participate in the poll.

Thank you.
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Old May 16, 13, 12:36 am
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Is he served the same fine complimentary drinks that he offers now in the SkyClub?
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Old May 16, 13, 12:55 am
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Yes he does, but please pay him with Skymiles.
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Old May 16, 13, 1:25 am
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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.
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Old May 16, 13, 1:42 am
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Originally Posted by DL2SXM View Post
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.
I gotta agree. I was not and am not completely sold on him from the consumer point of view. But, it is hard to argue with success. Many people will never say that a person is "worth" xx,xxx,xxx. I read it on ESPN SportsNation all of the time. Because America loves capitalism until they don't. The bottom line is the bottom line and he has increased the bottom line by a MUCH larger percentage that the raise.

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?
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Old May 16, 13, 1:58 am
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Originally Posted by indufan View Post
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?
I will answer anyway: absolutely...

...but will that increased value be retained and perhaps further increase in the long term?
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Old May 16, 13, 3:41 am
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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
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Old May 16, 13, 4:03 am
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Originally Posted by LADELTA777 View Post
Yes he does, but please pay him with Skymiles.
^
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Old May 16, 13, 4:08 am
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Originally Posted by LADELTA777 View Post
Yes he does, but please pay him with Skymiles.
And make him use Delta.dumb to redeem them.
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Old May 16, 13, 7:00 am
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Originally Posted by DL2SXM View Post
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.
+2
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Old May 16, 13, 7:34 am
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Originally Posted by DL2SXM View Post
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.
+2 - "He doesn't give away enough freebies to freeloaders who believe that they are 'elite' because they've got a shiny plastic card that says so" is not an argument Directors and shareholders particularly care about.

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.
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Old May 16, 13, 12:22 pm
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Originally Posted by Sabai View Post
And make him use Delta.dumb to redeem them.
Originally Posted by LADELTA777 View Post
Yes he does, but please pay him with Skymiles.
Both of these. ^
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Old May 16, 13, 2:09 pm
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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.
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Old May 16, 13, 2:19 pm
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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%?
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Old May 16, 13, 2:41 pm
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Originally Posted by FlytheTail View Post
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%?
^^ Share the wealth Richard, you think you have great employees now, see them really produce results and greater service when they have a greater stake in the success.

How many millions do you need anyway?
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