39,000 Delta Employees to Receive Stock and Cash Payouts After Delta’s Emergence From Chapter 11
ATLANTA - Delta Air Lines will provide its noncontract employees with stock and cash payouts after Delta’s emergence from Chapter 11 in early May. Delta will distribute to its roughly 39,000 noncontract employees 3.5% of the outstanding Delta common stock, which is estimated to have an initial value of approximately $350 million. Eligible employees will also receive cash lump sum payments with an aggregate value of approximately $130 million. Together, these two components are expected to have a value of approximately $480 million.
“A bedrock principle of Delta’s transformation is that Delta people around the world would benefit from the success their hard work helped make possible,” said Gerald Grinstein, Delta’s Chief Executive Officer. “Thanks to their remarkable efforts, Delta is poised for success. We are extremely pleased to honor our commitment by ensuring that all Delta people will have a new, competitive and more rewarding compensation package when the company emerges from Chapter 11 later this spring.”
Delta’s new compensation program will also include a greater emphasis on pay-for-performance, appropriately balancing at-risk and fixed compensation for all Delta people, and more closely aligning both the management and frontline compensation programs with the best interests of Delta’s other stakeholders.
“From the outset of our Chapter 11 proceedings, we have approached compensation differently than we did in the past and than most other companies in bankruptcy, including other airlines,” said Edward H. Bastian, Executive Vice President and Chief Financial Officer. "Difficult sacrifices have been required from all Delta people, with everyone, including management and union and noncontract workgroups, fully sharing in the sacrifices necessary to put Delta in a position to emerge from bankruptcy as a strong, healthy competitor and an industry leader.
“Going forward, our management compensation program will more closely link pay to performance and align compensation with the long-term interests of Delta’s shareholders, to retain the best people we have, to attract new talent to the company when we need it and to establish transparent, well-defined performance metrics for our leaders so we can continue to provide value to our shareholders, our customers and our employees,” Bastian continued.
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