Turning his back on a potentially lucrative payday, Delta Air Lines CEO Gerald Grinstein said Monday that he is refusing any stock, stock options or cash when the carrier emerges from bankruptcy.
Grinstein, who has led the USA's No. 3 airline since January 2004, said he wants Delta instead to invest what he would have gotten in post-bankruptcy bonuses, to be used for scholarships and emergency hardship assistance for Delta employees, families and retirees. Under a post-bankruptcy compensation plan unveiled Monday, Grinstein could have been expected to net about $10 million, including such bonuses, over about three years.
The other airline CEO's whose companies are also coming out of bankruptcy, are not likely to follow in the same suit.
By contrast, United Airlines' management wanted 15% of that airline's stock divided among the top 400 executives when it exited bankruptcy last year. When bankruptcy creditors objected, executives ended up with 8%.
Northwest Airlines, which filed for Chapter 11 protection on the same day as Delta, filed its reorganization plan with the court on Feb. 15, leaving out its proposal for executive compensation after bankruptcy. The company has said it will file that at a later date.
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