Citizens United To Reform Bankruptcy Laws Blog

Wednesday, February 16, 2005

Northwest Considers Freezing Pension Plan

Story Here>>

More attacks on airline worker's pension plans but, what about a freeze on CEO pay and benefit options??
Let's take a look at Northwest Airlines CEO, Richard H. Anderson, lucrative pay package. I'm sure we will find a way to pay some of Northwest's bills and ease workers's worries.

Richard H. Anderson
CEO
Northwest Airlines Corporation

In 2003, Richard H. Anderson raked in $3,780,167 in total compensation including stock option grants from Northwest Airlines Corporation.

From previous years' stock option grants, the Northwest Airlines Corporation executive cashed out $13,407 in stock option exercises.

And Richard H. Anderson has another $1,632,938 in unexercised stock options from previous years.

How many workers could be supported by Richard H. Anderson's $3,780,167 pay package?

3 Nobel prize winners
11 average university presidents
9 U.S. presidents
16 AFL-CIO presidents
35 Chairmen of the Joint Chiefs of Staff
148 average workers
352 minimum-wage earners

How long would it take to equal Richard H. Anderson's total compensation for 2003?

A Nobel prize winner would have to work until 2006 A.D.
An average university president would have to work until 2014 A.D.
The President of the United States would have to work until 2012 A.D.
AFL-CIO President John Sweeney would have to work until 2019 A.D.
The Chairman of the Joint Chiefs of Staff would have to work until 2038 A.D.
An average worker would have to work until 2151 A.D.
A minimum-wage earner would have to work until 2355 A.D.


2003 Compensation
Salary $500,000
Bonus $0
Long-Term Incentive Payoffs $0
Restricted Stock Awards $1,905,750
Other Compensation $10,546
Value of Stock Option Grants* $1,363,871
Total 2003 Compensation Plus Stock Option Grants

$3,780,167
Compensation from Prior Stock Option Grants**
Value of Options Exercised in 2003 $13,407
Value of Exercisable Options $0
Value of Unexercisable Options $1,632,938
* Black Scholes present value model as reported in the company's proxy statement.
** Not counted in 2003 compensation totals.
Source: eComp Database - http://www.ecomponline.com

CEO-to-Worker Comparisons
Annual Weekly Daily Hourly Per Minute
Richard H. Anderson $3,780,167 $72,695 $14,539 $1,817 $30
Minimum-Wage Worker $10,712 $206 $41 $5.15 $0.09
Average Worker $25,501 $490 $98 $12.26 $0.20
President of the U.S.A. $400,000 $7,692 $1,538 $192 $3.21


So....I don't see a problem as to a short-term fix for some of Northwest's financial woes. But, will the right-wing bankruptcy courts see it through a worker's eyes??

I doubt it.

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