USA Today’s Today In The Sky Blog is reporting this morning that Delta CEO Richard Anderson and Delta President Ed Bastian have been rewarded handsomely for achieving the Delta / Northwest Merger.  Anderson will receive more than $13 Million in stock awards and Bastian receives just over $5 Million in stock awards.  Both men aren’t fully vested in the compensation until 2011.

While I think it appropriate to compensate two men who obviously worked very hard at making this merger happen, I do think this news comes out at the wrong time and I do think the reward is perhaps premature.  The unions involved in this merger, particularly the IAM, will no doubt bristle at this news despite the fact that Delta / Northwest employees will be receiving stock in the new company.  About 5% for the pilots and 4% for most other employees.  

It would have been better to tie this award to milestones for achieving all of the merger.  First, award some percentage, perhaps 50%, for bringing the two companies under one corporate structure.  Second, set milestones based on the full integration of the company such as pilot seniority lists being fully merged, flight attendant senior lists merged, both sides of the company operating under the same certificate, etc.   There isn’t anything wrong with rewarding accomplishments but I feel this job is only half done at best and there should be some strong incentives to complete the work before granting the prize.

Filed under: Airline News by ajax