Originally Posted by
PilotWombat
Ok, so, I know most large cap companies pay their executives primarily in stock, they are grossly overcompensated when compared to their employees, and I was under the impression (no source) that the Delta BOD changed the metrics in early 2020 so that their compensation wasn't tied as closely to financial metrics as they were in years past. It's stupid and it's unfair, but until capitalism itself changes along with our tax code, that's just the way it is. Rich people gonna rich.
With regards to Ed specifically, when he announced he would waive his salary, people rightly called him out for taking his whopping 6% pay cut while everyone else took a 25% hit (thank god for our union contract...).
So in the interest of education, is Delta doing something exceptional about what is posted above? It sounds pretty boilerplate to me, but that might just be my own ignorance.
They are decoupling from the PS calculation because it didn't pay out for 2020 and that would mean no MIP. Yeah, I expect they will ALWAYS get paid. This is just blatant changing the rules during the game. Crisis is always a good time for extortion. My guess is that the compensation committee sees our senior level VPs leaving and knows they have to make the recruiting/retention more attractive for people to want to be employed by a company accepting a government bailout to stay viable. The hypocrisy still makes me mad. I should probably be immune to it by now, ...but I'm not.
The annual publishing of the targets was a predictor for what management thought the PS would be (both high and low end) which in turn was a prediction of the level of performance we could expect. We will see what's in the 10K next month.