FlyerTalk Poll Results: Has Delta CEO Earned Compensation Increase of 42%?
The compensation package for Richard Anderson — chief executive officer of Delta Air Lines — reportedly increased from $8.9 million in 2011 to almost $12.6 million.
FlyerTalk members were polled over a period of 30 days as to whether or not they believe that Richard Anderson deserves and has earned increased compensation — and the results are as follows:
|Do you believe that Richard Anderson deserves and has earned increased compensation?|
|I am not sure and undecided about this question.||4.10%|
Comments and opinions posted by FlyerTalk members includes the following:
“His job entails making the company, its shareholders, and its tens of thousands of employees money. He has done just that, and at the same time, is leading the pack. His job doesn’t entail giving away the shop to medallion members. Like it or not, certain things needed to be tightened up. He has earned every cent of that money.”
— FlyerTalk member DL2SXM
“In an absolute sense, yes RA deserves most, if not all, of his pay increase/bonus. He has produced value for the owners of Delta, namely the stockholders. That is his job. Now the means of how he has produced value — nickel-and-diming people, having Worst In Class™ IT, making elite status be worth less and less, etc. — is open for debate.”
— FlyerTalk member ThrowDownYourLeavyScreens
“I think such an increase in compensation is too much. It’s not just Dick who is responsible for Delta’s performance. Sure he deserves a raise, but at the same time, shouldn’t that wealth be shared with fellow employees? How many outside of DL HQ received a pay raise that approaches 40%?”
— FlyerTalk member FlytheTail
“Actually, as CEO comp packages go, this one is actually pretty decent and reasonable. The cash portion, which I would consider fair for a CEO of a company the size of Delta, is dwarfed by the stock options and stock. Main question I have is the period the stock is restricted as to sale; if it’s a decent time period, it can be a good incentive for a CEO to take the long view in strategic thinking. It’s very easy to make decisions that temporarily bump up a stock’s price and increase profitability in the short term. It’s quite another to maintain that performance over a longer timeframe, say 5 to 7 years.”
— FlyerTalk member us2
“After seeing his performance on several preflight videos, I cannot in any way believe that he is responsible for any success at Delta…even if he has a big desk to sit behind. How these people get to be CEOs is far beyond my comprehension.”
— FlyerTalk member tgtg
As you can imagine, FlyerTalk members vary on their opinions — as well as opine about the compensation packages of chief executive officers of companies in general.
What are your thoughts?