SF Gate: Northwest CEO says no special deals for executives

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This article was sent to you by someone who found it on SF Gate.
The original article can be found on SFGate.com here:
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inancial1029EDT0066.DTL

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Thursday, May 1, 2003 (AP)
Northwest CEO says no special deals for executives



   (05-01) 07:29 PDT MINNEAPOLIS (AP) --
   The chief executive of Northwest Airlines told employees that top manage=
rs
have not received special perks in an attempt to reassure them as they
consider a proposed package of annual cuts totaling $950 million.
   "There aren't any compensation surprises in store for anyone," Richard
Anderson said Wednesday in a recorded message to employees that appeared
to be in response to recent events at American Airlines. "We do not have
funded trusts for management pension plans or any cash retention plans for
the executive officers of the company."
   Anderson made no direct reference to American in his message, but the
connection was obvious.
   Workers at American nearly refused to accept $1.8 billion in annual cuts
after finding out that the company had approved bankruptcy-proof pensions
and huge bonuses to executives. The ill-timed disclosure at American two
weeks ago and the mistrust it created between workers and management
eventually led to the resignation of chief executive Donald J. Carty.
   Anderson said Northwest has "acted responsibly."
   Northwest President Doug Steenland and Anderson, who have each worked at
Northwest about a dozen years, are covered by the Supplemental Executive
Retirement Plan and a cash-balance pension program for salaried employees,
a Northwest spokesman said.
   Northwest has presented labor cost-cutting plans to all seven unions, and
Anderson notified salaried employees that their pay and benefits will be
cut 5 percent to 15 percent.
   "We will absolutely share in the significant cost reductions that we have
to take," he said. "And I will personally be certain that we do so."
   Three union representatives sit on Northwest's board of directors, so
labor has seats at the table when executive compensation and pensions are
discussed. The unions have had board representation since labor groups
agreed to concessions 10 years ago.
   Those union seats are held by Ray Benning of the Teamsters, Mike Ristow =
of
the Air Line Pilots Association and George Kourpias of the International
Association of Machinists and Aerospace Workers

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Copyright 2003 AP

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