Up 42 Percent

Delta Air Lines boosts CEO pay

by The Associated Press

ATLANTA (AP) — The CEO of Delta Air Lines saw his compensation jump 42 percent last year as the airline boosted his long-term incentive pay and the airline made more money than its peers.

Richard Anderson's compensation rose to almost $12.6 million, up from $8.9 million in 2011, according to an Associated Press calculation based on an SEC filing Tuesday.

His pay is divided between cash and stock and options that will only have value if Delta's stock price rises.

Delta paid Anderson $2.7 million in cash as part of an annual incentive plan, up from about $1 million a year earlier. It also added $2 million worth of stock options in 2012.

Delta awarded him $7 million in stock in both years.

His base salary rose 9 percent to $652,083. Delta said it was Anderson's first base salary increase since he joined the company as CEO in 2007.

Delta had a $1 billion profit last year. It has been more profitable than its chief competitors — United Continental Holdings Inc., which lost $723 million last year, and American Airlines, which spent the year reorganizing under bankruptcy protection.

Delta shares rose 47 percent last year as its finances improved. The stock also benefited from the growing investor view that airlines aren't as risky as they used to be, and that they will be helped by consolidation in the industry, including the merger of US Airways and American announced in February.

The Associated Press formula calculates an executive's total compensation during the last fiscal year by adding salary, bonuses, perks, above-market interest that the company pays on deferred compensation and the estimated value of stock and stock options awarded during the year. The AP formula does not count changes in the present value of pension benefits. That makes the AP total slightly different in most cases from the total reported by companies to the Securities and Exchange Commission.

The value that a company assigned to an executive's stock and option awards for 2012 was the present value of what the company expected the awards to be worth to the executive over time. Companies use one of several formulas to calculate that value. However, the number is just an estimate, and what an executive ultimately receives will depend on the performance of the company's stock in the years after the awards are granted. Most stock compensation programs require an executive to wait a specified amount of time to receive shares or exercise options.



More Business

Shared Wisdom

How to promote yourself without being vain

Is it possible to genuinely be interested in the needs of others, and still promote yourself? Absolutely, and it can be a “win/win&rdq ... Read More


Business Briefs

The Bullsboro Drive Starbucks has reopened after its renovation. * * * Boulevard Salon open in Avery Park Charlotte’s The Boulevard ... Read More


Bubbles & Brushes Art Studio

Creative local business finds success encouraging budding young artists

Growing up as a young artist, Joanna Harvey never pictured herself as a successful business owner. Initially, she had intended on being an a ... Read More


President and CEO of Niagara Bottling, LLC

60 Seconds with Andy Peykoff II

What do you consider to be your personal business philosophy? “The person who says it can’t be done should not interrupt the per ... Read More


Business Briefs

The Boneyard now at Collector’s Corner The Boneyard Antiques, formerly on Raymond Hill Road, is now at Collector’s Corner, at H ... Read More

End of an era

After three decades, Newnan Florist closing

Since 1977, Bill and Fran Exner have owned and operated Newnan Florist on Greenville Street. Through their years of overseeing weddings, fun ... Read More