FUZZY MATH AND BIG BONUSES

BIG 4TH QUARTER LOSS DOESN’T STOP LARGE EXECUTIVE PAYOUTS

Still digesting the enormous 4th quarter loss? Strangely, in Delta’s first reporting of the loss of $1.4 billion, they characterized $900 million of loss as equity disbursement to employees and a little over $100 million as guessing wrong on fuel hedges.

However, virtually every other news source reported Delta’s fuel hedging loss at over $500 million for the quarter. Delta has, since the initial reporting, quietly dropped the claim of $100 million in fuel hedging loss in subsequent Deltanet publications.

By Delta’s own admittance, just under 1/3 rd of the equity disbursements or $300 million dollars went directly to Delta’s top “600-700 managers.” One can deduce that $800 million (fuel hedges and executive bonuses) of the quarterly loss was directly attributable to actions taken by our own top execs. Hardly a ringing endorsement for a sound, sturdy leadership direction!

Why is it then that in a nation reeling from potential pending economic obliteration, would our management team on the 30th of January award themselves over 1 million shares of stock worth close to 10 million dollars? Bonuses for a job well done, or just the good old boys taking care of each other?!

At the very least, one should call what happened as very poor timing on their part.

In a nation where the top CEO’s of Wall Street gave themselves billions of dollars in bonuses after receiving tax payer bailout monies and were roundly criticized by virtually everyone, why would this payout happen?

Given the fact that our new President put limits of compensation to $500,000 annually on executives at firms who received this money; don’t you think it is unwise for a corporation that benefited from bankruptcy laws to lavish such gaudy bonuses on themselves at such a difficult time in American economic history?

This is poor judgment and even worse P.R. for Delta and our newly formed airline. What this says about their abilities to lead and make decisions concerning our future should worry all who work here.

In late December while appearing on CNBC talking to Gordon Bethune, Richard Anderson said this; “A bankruptcy court is a court of equity and has very broad power to assist you in terminating contracts and restructuring your costs.”

He later stated that Delta and Northwest could not have brought these airlines together without the help of the bankruptcy court. Delta’s financial success is ultimately contingent upon the dumping of debt and a large portion of old contractual obligations onto the public, not to mention walking away from promises made to employees and vendors. Don’t forget – no profit sharing in 2009 for us!

No, this is not a good time for Richard and his top 7 fellow henchmen to acquire over 1 million shares of additional stock for the job they do. It looks bad and is a poor reflection upon all of us. Give it back boys; make us proud.

Our last CEO, Jerry Grinstein only accepted his base salary for the last few years he worked for Delta; roughly under $400,000 dollars annually. This was a modest compensation for the yeoman work he did for all of us. A man of honor and dignity who knew what he asked of others and that was reflected in his treatment of us.

The less they take the more we’ll make.