To: "Dave Roberts" <robertsdl@mindspring.com>
Subject: Executive Pensions from WSJ
Date: Wed, 26 Mar 2003 13:19:48 -0500
X-Mailer: Microsoft Outlook Express 6.00.2600.0000
Dave this might be of interest to retired pilots from Wall Street journal article:
According to other disclosures Tuesday, the underfunded portion of Delta's pension plan increased to $4.9 billion in 2002 from $2.4 billion the prior year. The eroded funding was due largely to a $718 million investment loss and to a $798 million increase in pension liabilities that resulted when the company voluntarily chose to lower its discount rate to 6.75% from 7.75%. However, with a favorable turn in the financial markets and a rise in interest rates, the underfunding could be reversed quickly.
Although the funded status of the regular pension plan eroded, the company took steps to fund the special pensions of its executives, the proxy shows. Ordinarily, special executive retirement benefits are "at risk," meaning that if a company files for bankruptcy-court protection, the executives could lose some or all of the retirement payments.
However, noting that "the business environment presents ongoing risks and creates a significant concern for retention of management personnel," the proxy discloses that in January 2002 Delta created special individual retirement trusts for 33 executives.
During the year, the company deposited into each executive's trust 60% of the amount the executives would need to replace retirement benefits due to them at age 62. The executives will receive 80% of their unsecured benefits by the end of this year and 100% by the end of 2004. In addition, Delta is paying the taxes that the executives incur for receiving the advance payments into the trusts. Mr. Mullin received $4.5 million in advance payments and an additional $3.7 million in tax "gross-up" payments.
Delta declined to comment on the payments.
Bob Weaver
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To: "David L. Roberts" <robertsDL@mindspring.com>
Subject: Re: DELTA EXECUTIVES RECEIVE BONUS
Date: Wed, 26 Mar 2003 13:34:46 +0000
X-Mailer: AT&T Message Center Version 1 (Nov 25 2002)
X-Authenticated-Sender: Y2FwdGNhcmxAYXR0Lm5ldA==
Dear Dave,
This type of behavior is very demoralizing.
Carl Raymond
767ER Retired
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To: robertsDL@mindspring.com
Date: Wed, 26 Mar 2003 02:32:49 -0700
Subject: Re: DELTA EXECUTIVES RECEIVE BONUS
X-Mailer: Juno 4.0.3
.....this makes the hair on my neck go up, like clench my fists and
bristle! CF
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Date: Wed, 26 Mar 2003 01:09:30 -0500
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To: Dave Roberts <robertsDL@mindspring.com>
Subject: Billions and Billions served;
CNN ran a piece Tuesday on Delta stock. Seems Delta lost $397 million in this 2003 quarter. That is a much greater loss than 2002 when the company lost a total of $1.3 billion. CEO Mullin got a $1.4 million bonus for 2002 bringing his total wages to $13 billion. That's twice his wages for 2001 of $6.21 million and no bonus. He offers to return 10% of his salary. He can afford to as his salary is only $795,000, a small fraction of his total compensation. Note that his bonus alone is twice his salary. Reids and Burns compensation were $4.52 and $3.1million respectively. However, Delta was quick to point out that pensions, interest and fuel would rise 600 to 800 million this year. Listed in that order.
I had a friend who owned a dairy farm and I asked him how he could sell his "reduced production" cows to McDonalds.
Jokingly, he said "I keep her last glass of milk to drink with my hamburger. " These fellows are not joking!
Dan Hurley, Capt, (Ret). 727 BOS
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Date: Wed, 26 Mar 2003 08:07:34 -0500
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To: Dave Roberts <robertsDL@mindspring.com>
Subject: PRESS DIGEST-Wall Stret Journal, March 26
Delta Air Lines (DAL) took steps to ensure the stability of its top executives pension plans, despite the airlines stryggles with large losses and reduced capacity.
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Date: Wed, 26 Mar 2003 12:29:46 EST
Subject: Re: Mullin's Millions & More Furloughs
To: robertsDL@mindspring.com
X-Mailer: 7.0 for Windows sub 10638
This is the ultimate in bad judgment and fiscal responsibility by the Board of Directors of Delta Air Lines. It is now time to elect a new Board of Directors that will have the interest of the airline as it's primary objective. There's not a lot of time to get a plan of action. Let's quickly get some input in how to oust the Board.
Jean Marie Cinotto
Flight Attendant
Pilot Spouse
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Cc: "David L. Roberts" <robertsDL@mindspring.com>
Subject: Delta Airlines Article
Date: Wed, 26 Mar 2003 21:03:23 -0600
X-Mailer: Microsoft Outlook Express 6.00.2600.0000
Dear Theo Francis, Ellen Shultz, and Nicole Harris,
Thank You for the informative article you wrote about the management and problems at Delta Airlines. It is my hope that all stockholders, employees and former employees will have the opportunity to read this excellent work! You have pointed out the blatent greed and disregard for the employees that the current management, and board of directors, hold for a fine company built by hard work of it's employees. In simple terms, management has robbed the company of cash, although quasi legal, to feather their own bed in case of bankruptcy, and show no remorse, and no leadership, and still think the employees should take large concessions to make up for the failure of management and management's inept business practices. Without a doubt, management is guilty of pure theft, and has absolutely no moral character! It is criminal to allow these practices of management to continue, but until there is an uprising of the stock holders and company employees to hold the managers and the board of directors responsible for their actions, this type of "leadership" will not change. I only wish your reporting could make front page headlines around the country, but especially in Atlanta!
Sincerely,
Gary McCutchon, retired Delta Capt
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To: "David DAL ret Roberts" <robertsdl@mindspring.com>
Subject: Death of the Delta Family
Date: Thu, 27 Mar 2003 16:37:30 -0500
X-Mailer: Microsoft Outlook Express 5.50.4133.2400
Re the executive pension story:
How about if take a long black hearse, paint "The Delta Family" on the sides and drive around the GO all day long?
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Date: Sat, 29 Mar 2003 15:40:05 -0800 (PST)
Subject: Re: Fwd: Delta Execs Pay, Pensions
To: "David L. Roberts" <robertsDL@mindspring.com>
Hi Dave
Leo has just been handed the opportunity of a lifetime to show his leadership. All he has to do is announce that henceforth he will accept only one dollar per year in salary. He should invite, but not demand, the three top paid executives below him to join him.
Don't ask the pilots and flight attendents for anything. They recognize leadership when they see it and will take whatever steps are necessary to make their own contributions to the survival of the company.
Morale will skyrocket. The media will ask for interviews. Ticket sales will go up.
when the company returns to profitability salaries will be reinstated in the order in which they were proffered. You may post this if you like. Best regards and thanks for your great service to the retired community.
Charlie
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To: "David Roberts Pilots Net" <robertsDL@mindspring.com>
Subject: Letter about Delta Management
Date: Sat, 5 Apr 2003 00:00:24 -0500
X-Mailer: Microsoft Outlook Express 5.00.2615.200
Dave,
After reading all of the hype about the pay for Leo and his gang, I felt the need to get this off my chest.
I feel that we and all of our fellow retires are being taken to the cleaners by the current management and by
some of the past management types.
I would be pleased to have you put this open letter on the web site for all to read.
I will stand behind all of my statements.
Grady M. Weems
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Date: Thu, 3 Apr 2003 11:58:17 EST
Subject: Fwd: Taxpayer Money Taken By Delta Exec.
If you are
--an airline employee, family or friend
or
--a hard-working individual who dutifully pays taxes
Log onto www.congress.org and send this message to Senator John McCain, head of the Commerce Committee. Just copy and paste this into the body of the letter and fill in your name and info. It will take less than two minutes.
Re: Delta Air Lines Executives Pay and Retention
There should be a federal investigation--up to and including criminal charges--at Delta Air Lines. A total of $42 million was given out by the Board of Directors to 60 executives. This was after government aid and during the request for more federal aid for the financially suffering airline by Leo Mullin. CEO Mullin personally gained the most--a package worth about $13 million and he's leading the charge for more money for the ailing airlines. He's not alone--Continental Airlines gave CEO Gordon Bethune a pay package worth about $11.9 million. If this isn't misappropriating taxpayer dollars, I don't know what is.
Delta Board members Edward H. Budd (ex-The Travelers Corporation), George M.C.Fisher (former Eastman Kodak), David R.Goode (Norfolk Southern Corporation) and Gerald Grinstein (Agilent Technologies) comprise the Compensation Committee that came up with this pay and retention package. They are also the same four that make up the Corporate Strategy Committee. Not only should they be voted off the board, but they should be included in the investigation.
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Full-name: JMCinotto
Message-ID: <2f.373d6906.2bb7309a@aol.com>
Date: Sat, 29 Mar 2003 12:23:38 EST
Subject: Save Delta Air Lines
Re: Executive Bonuses at Delta
Here's what you can do:
1. Vote your Delta stock. You will be receiving your instructions for voting soon (they were mailed on March 25. Vote to replace Directors Budd, Fisher, Goode and Grinstein. They're the four directors who comprise the Compensation Committee that came up with this executive pay package. As importantly, they are also the four directors that make up the Corporate Strategy Committee.
Replace their names with:
Captain Michael Messmore
Captain Scott H. Martin
Captain John P. Ley
Flight Attendant Jean Marie Cinotto
Also, vote FOR Proposals 4, 5, 6, 7, 8 and 9 along with ousting board members Budd, Fisher, Goode and Grinstein.
Follow your voting instructions carefully. You must make the individual selections. Do not sign over your voting rights. If you do Directors Budd, Grinstein and Leo Mullin will vote for you. If you do not vote, Directors Budd, Grinstein and Mullin will vote for you. There are three ways to vote internet, phone or mail. Mail allows you to write in the new candidates for Board of Directors.
2. As a participant in the Delta Family-Care Savings Plan (Savings Plan), you have the right to provide confidential instructions to Fidelity Management Trust Company, the Savings Plan trustee (Trustee), on how to vote the Delta stock attributable to your Savings Plan account. You should be receiving instructions on how to do this. You can do this by phone, internet or mail. Again, mail is the only way you can write in new board members.
EVEN IF YOU CHOOSE NOT TO VOTE FOR ANY OF THE SUBSTITUTE CANDIDATES, WITHHOLD AUTHORITY TO VOTE FOR Budd, Fisher, Goode and Grinstein (it will be by numbers 01, 02, 03 and 04).
2. PRIMECAP Management Company, 225 South Lake Ave., Suite 400 Pasadena, CA 91101-3005 holds 12.5% or 15,428,733 share of Delta stock, mainly in Vanguard PRIMECAP Fund. In Amendment No. 5 to its Schedule 13G filed February 24, 2003, the Vanguard PRIMECAP Fund, 100 Vanguard Blvd., Malvern, PA 19355, reported that it had sole voting power over all 9,464,700 of such shares. If you have an interest in this fund, write them and tell them that you object to Directors Budd, Fisher, Goode and Grinstein harming your earnings and to let you personally know how they intend to vote the shares held.
3. Write Senator John McCain, head of the Senate Commerce Committee, ask him to launch a criminal investigation into the misconduct of Delta's executives and Directors Budd, Fisher, Goode and Grinstein. Tell him that you object to layoffs and pay reductions in the industry and taxpayer bailouts that are then misappropriated to individuals (60 executives).
4. Write your Senator, Representative and the President and tell them the same thing. You can do this on-line at http://www.governmentguide.com follow the links to leave emails for your elected officials. If you do not own Delta stock and are a taxpayer, do the same thing. If you are a loyal Delta customer and have put up with long lines and diminished service because of cutbacks, write and protect your interest and express your disgust.
4. Write to The Atlanta Journal-Constitution, The Wall Street Journal, USA Today, Dateline NBC, (all on-line--do one today, one tomorrow, etc.) and your local paper--call for a federal investigation--up to and including criminal charges. A total of $42 million was taken by 60 people after government aid and during the request for more aid by Leo Mullin, who personally gained the most.
Your letters do not have to be lengthy--just tell them that there MUST be an investigation and you will be following those investigations.
Send this request to everyone on your address list. Ask all of your friends and relatives to do the same. Executive exploitation of publicly traded companies must be stopped.
Jean Marie Cinotto
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To: "David L. Roberts" <robertsDL@mindspring.com>
Subject: Re: Delta Execs Pay, Pensions
Date: Thu, 27 Mar 2003 09:57:57 -0600
X-Mailer: Microsoft Outlook Express 6.00.2800.1106
Yessir, the old Delta Family is sacrificing together. But our financial performance in the face of adversity certainly makes such executive compensation understandable.
Jack Woodul
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To: <robertsDL@mindspring.com>
----- Original Message -----
From: wolf's indoor soccer
To: Bob Shelton
Sent: Tuesday, April 08, 2003 9:35 AM
Subject: Fw: DAL special pension
Is it time for regime change at Delta Airlines?
Unless things have changed since I retired a few years ago, one of the
cardinal unwritten rules was "Don't bring bad publicity to the company".
If you did, it was grounds for termination.
