Delta awarding CEO $13.6M for closing NWA deal

Delta and Northwest planes. (Jim Mone/AP)

Delta Air Lines CEO Richard Anderson will get stock awards worth almost $13.6 million beginning next year for closing the carrier's buyout of Northwest Airlines.

Employees of Delta Air Lines, including their new coworkers from Northwest, are also getting stock.

Atlanta-based Delta had said previously it would hand out about 15 percent of its shares to various employees, including almost 10 percent to the rank-and-file. Another 3.5 percent is going to about 700 officers, directors, and managers.

Anderson will get 760,000 restricted shares, worth almost $8.6 million based on Delta's share price at midday Monday. He also gets options on 1.52 million shares at an exercise price of $7.99 per share, which was Delta's closing share price on Wednesday, just before the Northwest deal closed.

With Delta shares trading at $11.28 at midday Monday, those options could give him a profit of $5 million if they could be exercised right away. However, Anderson has to stay with Delta to get the shares and options, with the first 20 percent vesting on May 1, 2009, and the last 40 percent vesting on Nov. 1, 2011.

Click here for more GPB coverage of the merger.

(AP)

Delta announces takeover timeline

Delta Air Lines announced plans today for the composition of its senior leadership team after it acquires Northwest Airlines later this year. The Atlanta-based carrier said it expects to take 12 to 24 months to transition Northwest into Delta. Delta Chief Executive Richard Anderson will lead the combined airline.

Delta, Northwest announce merger

Atlanta-based Delta Air Lines announced Monday that it will acquire Minneapolis-based Northwest Airlines in a deal that will create the world's largest airline. The combined company will retain the Delta name and be headquartered in Atlanta.

In a statement on its website, Delta says the airline will maintain its nine existing hubs in the United States, Europe and Asia. The deal is expected to result in a number of administrative job losses, but few are expected among frontline employees such as flight attendants, pilots or mechanics. 

Consumers could see higher fares with reduced competition on some routes. However, relatively little overlap exists between the current Northwest and Delta route systems. 

Frequent fliers can expect to retain their earned mileage points since both airlines' reward programs are already integrated through the SkyTeam network. 

Delta CEO Richard Anderson cited record oil prices, a weakening economy and increasingly competitive marketplace as reasons for the move. He expects the new airline will achieve greater financial stability and job security for its employees.

Anderson will remain CEO of the new, combined airline. Northwest CEO Doug Steenland will take a position on the airline's board of directors. 

Click here for more GPB news coverage of the Delta-Northwest merger.

Delta CEO to pass on extra pay

Delta Airlines’ chief executive, Richard Anderson, will voluntarily forgo bonus pay that he would accrue if his company merges with another. The move came in a regulatory filing by Anderson. Delta’s board of directors also approved the offer. The airline has been weighing merger options in recent weeks, although the company has not commented on specifics of a potential deal. It is unclear how much money Anderson would potentially be giving up.

Delta: not talking merger with United

Delta Air Lines' CEO Richard Anderson told a congressional committee Thursday that he hasn’t spoken to officials with United Air Lines in at least four years. That answer came as a response to questions on whether the two airlines were talking merger. Anderson said no merger discussions are ongoing between Atlanta-based Delta and Chicago-based United, and none are planned. Anderson was in Washington to speak at the House subcommittee on aviation. A government proposal wants to cut the number of flights at New York’s JFK airport. Delta’s Anderson says that would threaten the airline’s ongoing bankruptcy recovery.

Delta to name new CEO

Delta Air Lines will name a new CEO today. The Atlanta-based carrier says it will announce Richard Anderson as its new chief. Anderson use to be chief executive of Delta rival Northwest Airlines. The move could revive speculation about a possible merger between Atlanta-based Delta and Minnesota-based Northwest. Current Delta CEO Gerald Grinstein plans to step down once his replacement is named.