CEO Refuses to Accept Golden Parachute
Retiring Delta Air Lines CEO Gerald Grinstein is turning down the post-bankruptcy compensation package that he is entitled to. He told Delta to use the estimated $10 million to help the employees:
Grinstein, who has led the United States' 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.
It isn't that the bankruptcy settlement would have benefited Grinstein alone. The top 400 executives received 8 percent of the company's new post-bankruptcy stock, and the 39,000 line employees will split 3.5 percent of the stock plus another $130 million in cash.
So this is truly refreshing:
Delta hopes to exit bankruptcy in May. Grinstein, 74, who plans to retire this summer, said it wouldn't be right to take money intended as an incentive for future executive performance.
"I'm leaving, so it doesn't fit me," he said in an interview. Besides, he said, "Corporate pay packages have gotten out of control. It has become a salary derby out there."
Bless you Mr. Grinstein. May you have a long and enjoyable retirement.
Blog post #6522 in category
Economics
posted 21 March 07