Airline aid package in Congress would cap CEO pay By Gary Strauss, USA TODAY Airline CEOs could pay for the federal aid Congress is proposing for the=20 industry =97 out of their own pockets. House and Senate appropriations=20 committees have OK'd $3.2 billion in emergency aid to an industry hard hit= =20 since Sept. 11, 2001. That is likely to be slashed. Wednesday, the White=20 House called the airline aid package excessive. However much is approved,=20 Congress is balking at providing financial aid to airlines that continue to= =20 pay executives large compensation packages despite massive layoffs, pay=20 concessions from unions and steep losses. Almost all big carriers are=20 forecasting continued losses for 2003. That's why both the House and Senate= =20 plans would cap CEO pay at 2002 levels at airlines seeking federal=20 assistance =97 no bonuses, stock grants or stock options. "This is a fair=20 price to pay in exchange for the massive new financial support that=20 taxpayers will provide to help stabilize the industry," says Rep. Martin=20 Olav Sabo, D-Minn., sponsor of the House measure. Airlines are bristling at= =20 pay-cap measures. Delta, for example, defended its executive pay program,=20 saying it's designed to motivate managers leading it through the industry's= =20 financial crisis. Delta lost $1.3 billion in 2002, yet CEO Leo Mullin got a= =20 $1.4 million bonus. If a bailout plan passes, Mullin would get $715,500 this year, vs. a 2002=20 pay package valued at $32 million, including stock options worth up to=20 $27.7 million. How rival CEOs would fare based on corporate financial= filings: =95 Continental's Gordon Bethune would get $1 million, vs. 2002 compensation= =20 valued at up to $15 million. Last year, Bethune received stock options=20 worth up to $7.7 million, a $3.5 million incentive award, $2.3 million in=20 stock and a $650,000 bonus. =95 US Airways' David Siegel would receive $600,000, vs. last year's=20 compensation valued at up to $10 million. Siegel, CEO since March 2002,=20 earlier agreed to a 20% pay cut for 2003. =95 Northwest's Richard Anderson would get $500,000. In 2002, he received=20 $2.7 million. Northwest also replaced 750,000 worthless options. =95 UAL's Glenn Tilton, named CEO in September, would get $845,000, vs. a=20 2002 pay package valued at $13.6 million. That included a $3 million bonus,= =20 $4.5 million for trust accounts and stock options worth up to $5.5 million.= =20 He earlier took an 11% pay cut. =95 AMR has yet to file a 2003 proxy. But after its unions agreed this week= =20 to concessions that will save $1.6 billion a year, CEO Don Carty said his=20 pay would be cut 33% and that he'd get no bonus for a third consecutive= year. Contributing: Marilyn Adams, Dan Reed *************************************************** The owner of Roger's Trinbago Site/TnTisland.com Roj (Roger James) escape email mailto:ejames@xxxxxxxxx Trinbago site: www.tntisland.com Carib Brass Ctn site www.tntisland.com/caribbeanbrassconnection/ Steel Expressions www.mts.net/~ejames/se/ Site of the Week:http://www.ttsailing.org/ TnT Webdirectory: http://search.co.tt *********************************************************