=20 ---------------------------------------------------------------------- This article was sent to you by someone who found it on SF Gate. The original article can be found on SFGate.com here: http://www.sfgate.com/cgi-bin/article.cgi?file=3D/news/archive/2003/12/23/f= inancial0004EST0010.DTL ---------------------------------------------------------------------- Tuesday, December 23, 2003 (AP) After pay flap, Delta cancels 2003 executive bonuses, assessing top-level c= ompensation HARRY R. WEBER, AP Business Writer (12-23) 21:04 PST ATLANTA (AP) -- Delta Air Lines is continuing efforts to soothe employees' hard feelings over millions of dollars in executive bonuses. The airline, which says it needs salary cuts from its pilots to remain competitive, said Tuesday it would reconsider its entire compensation program for high-ranking officials. Gerald Grinstein, the incoming CEO of the nation's third-largest carrier, told employees in a memo that he realizes pay and perks for top executives are still controversial. "As we move into a new year, it is important for us to clear the air on that topic so we can focus all our energy on the urgent job of making Delta strong and profitable again," wrote Grinstein, who takes over from Leo Mullin on Jan. 1. Delta has laid off 16,000 employees since the 2001 terrorist attacks. Also, for months it has been trying to obtain deep pay concessions from pilots to stem heavy losses. Last year, Delta paid out about $17 million in bonuses to 60 executives, the company said. Grinstein said Delta's board has decided not to award 2003 annual incentive compensation to Delta officers, even if it was earned by meeting the performance goals established at the beginning of the year. The reduction in total compensation for officers is in addition to an 8 percent pay cut Delta imposed on executives earlier this year. The board will consider paying annual incentive awards for other eligible employees below the vice president level, if it was earned. Grinstein also said the company is making further revisions to a separate incentive program in which top executives who stayed with the company for two years were to be paid a lump-sum retention bonus. In August, chief financial officer Michele Burns, chief marketing officer Vicki Escarra and executive vice president for human resources Bob Colman agreed to defer their retention payments over three years. Mullin and president Fred Reid agreed to rescind any such payments they were due. In his memo Tuesday, Grinstein said other executives can voluntarily def= er their awards under the retention program until the company becomes profitable, or 2007, whichever comes first. Or, they can take a one-time payment in January as they expected. Delta revealed -- amid the layoffs -- that a select group of executives had received millions in company payments to a program to protect their pensions. An uproar caused the airline to cancel the final payment and discontinue the program, which would have been fully funded at $65 million by next year. Ray Neidl, an analyst with Blaylock & Partners, said the decision is mea= nt to address pilots' concerns. "Overall, it's probably a good idea to review bonuses of top-level management if the company is not making money," he said. No new meetings are scheduled between the airline and pilots union, who last met in early December. The company is seeking a 30 percent pay cut, while pilots are offering only 9 percent and to forego a 4.5 percent raise they are due in May. On the Net: www.delta.com =20 ---------------------------------------------------------------------- Copyright 2003 AP