The Atlanta Business Chronicle has an article today entitled Delta details post-bankruptcy employee compensation program.
The Atlanta-based airline (Pink Sheets: DALRQ) said it plans to give its 39,000 noncontract employees 3.5 percent of the outstanding Delta common stock, which is estimated to be worth about $350 million. Eligible employees also will get cash lump sum payments worth a total of $130 million. The cash lump sum payment represents 8 percent of the noncontract employees’ 2006 earnings
Delta also plans to adopt an industry standard pay structure over time, beginning with a pay increase of 4 percent at top of scale in summer 2007.
A large part of compensation for company management will be at-risk and tied directly to Delta’s and individual performance. The new program for management includes equity awards of restricted stock, stock options and performance shares. In the aggregate, the equity awards to 1,200 managers represent about 2.4 percent of Delta’s value upon emergence from Chapter 11 — about $240 million