Some top Midwest executives received performance bonuses

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Some top Midwest executives received performance bonuses

MILWAUKEE (AP) =97 Top executives at Midwest Airlines have accepted wage=
 cuts=20
as they promised, although they received bonuses based on the company's=20
previous performance. Timothy Hoeksema, company president and chief=20
executive officer, received a $25,803 bonus as an installment payment tied=
=20
to the company's performance in 1999, according to documents filed with the=
=20
Securities and Exchange Commission reviewed by the Milwaukee Journal=20
Sentinel. Hoeksema's annual salary was $337,754 in 2002, down from $342,000=
=20
the year before and $355,500 in 2000. At least twice he has accepted=20
voluntary pay cuts, while in 2002 and 2001 he also accepted bonus payments=
=20
=97 totaling $51,606 =97 for previous-year company performance, the=
 newspaper=20
reported. Wage cuts have been a key part of the company's efforts to return=
=20
to profitability after two consecutive years of losses. No executives have=
=20
received bonuses for the company's 2002 performance, said Carol Skornicka,=
=20
senior vice president and legal counsel.

In the airline industry, executive salaries and compensation have been a=20
hot issue lately. Last week, American Airlines angered its labor unions=20
after the unions learned of a plan to pay the airline's top six executives=
=20
bonuses equal to twice their salaries if they remained with the company=20
until January 2005. The unions also were upset about the creation of a=20
trust that guaranteed parts of the pension plan for American's 45 top=20
executives in the event of a Chapter 11 bankruptcy filing. American has=20
since rescinded its bonus plan, but the pension trust apparently will stay=
=20
intact. Midwest doesn't have such a trust to protect its executive pensions=
=20
from bankruptcy, Skornicka said. And executive bonuses paid since 2000 have=
=20
been installment payments based on the company's previous performance in=20
1998 and 1999, she said. In 2002, two of Midwest's five top executives had=
=20
higher salaries compared with their salaries the year before. Thomas Vick,=
=20
senior vice president and marketing officer, received a base salary of=20
$214,173, compared with $147,597 in 2001. But Vick worked only nine months=
=20
for the company in 2001 after being hired in April of that year. David=20
Reeve, senior vice president-operations, earned $171,000 in 2002 compared=20
with $169,685 in 2001. The increase in pay for Reeve could be explained by=
=20
additional non-cash compensation, Skornicka said.
"None of our executives have received a salary increase since March of=20
2000," she said. Midwest pilots recently accepted wage cuts of 9 percent=20
and 5.75 percent for captains and first officers, respectively, from April=
=20
16 through Nov. 1. Midwest Connect pilots are still negotiating temporary=20
wage concessions as they attempt to reach an agreement on a new contract.=20
No contract talks are currently scheduled, union officials say.


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