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Joined: Sat Sep 25, 1999 12:01 pm

Airline CEO Pay

Mon Sep 27, 1999 12:14 pm

I read the following in the Atlanta Journal-Constitution.

Delta Air Lines' top executive, Leo Mullin, got $1.7 million in cash compensation during the carrier's past fiscal year, including his second consecutive $1 million bonus.

The figures are disclosed in the airline's proxy statement, issued late Friday in advance of the annual shareholders meeting Oct. 28 in Boston.

Mullin got $695,833 in base salary for the fiscal year that ended June 30, according to the proxy. That was up from $571,250 for his first 10 months at Delta.

In awarding the $1 million bonus, Delta's board of directors cited the company's strong profits and "continued improvements in customer service and operations." It also boosted Mullin's base salary to $700,000 for the current year.

A Delta spokesman said Mullin's cash compensation is third-highest among major airline chiefs, behind Continental CEO Gordon Bethune and American CEO Donald Carty.

Mullin got 118,200 stock options last year, exercisable over 10 years. They are worth an estimated $2.5 million, according to a standard value model required in proxies. When hired, Mullin had received 1 million future options, valued then at $16.9 million.

Mullin has yet to exercise any options, and Delta's recent stock slump has sharply reduced their current value. Shares closed Friday at $46.93 3/4, down 37 1/2 cents.

Chief Operating Officer Maurice Worth, who retired Sept. 1, got combined salary and bonus of $1.16 million, up from $1.02 million a year earlier.