MINNEAPOLIS — Northwest Airlines CEO Doug Steenland will have about eight million reasons to bail out of the struggling carrier this June.
His contract _ signed the day Northwest entered bankruptcy more than two years ago _ gives him an unusual one-month window to leave voluntarily and collect a special payment of at least $7.8 million. Steenland could get the same windfall if he leaves after a merger, but it's far from certain the carrier's talks with Delta Air Lines Inc. will lead to one.
Compensation experts said such lucrative escape clauses are an incentive to keep the CEO from leaving during the rough times. Others said CEOs whose companies go into bankruptcy shouldn't get that kind of reward.
Don't think the payout has anything to do with the merger. It was an "insurance policy" for him in case his stock options were underwater, as they are right now. Nice deal, if you can get it.