Wednesday, February 16, 2005

Northwest Considers Freezing Pension Plan

More attacks on airline worker's pension plans but, what about a freeze on CEO pay and benefit options??
Let's take a look at Northwest Airlines CEO, Richard H. Anderson, lucrative pay package. I'm sure we will find a way to pay some of Northwest's bills and ease workers's worries.

Richard H. Anderson
CEO
Northwest Airlines Corporation

In 2003, Richard H. Anderson raked in $3,780,167 in total compensation including stock option grants from Northwest Airlines Corporation.

From previous years' stock option grants, the Northwest Airlines Corporation executive cashed out $13,407 in stock option exercises.

And Richard H. Anderson has another $1,632,938 in unexercised stock options from previous years.

How many workers could be supported by Richard H. Anderson's $3,780,167 pay package?

3 Nobel prize winners
11 average university presidents
9 U.S. presidents
16 AFL-CIO presidents
35 Chairmen of the Joint Chiefs of Staff
148 average workers
352 minimum-wage earners

How long would it take to equal Richard H. Anderson's total compensation for 2003?

A Nobel prize winner would have to work until 2006 A.D.
An average university president would have to work until 2014 A.D.
The President of the United States would have to work until 2012 A.D.
AFL-CIO President John Sweeney would have to work until 2019 A.D.
The Chairman of the Joint Chiefs of Staff would have to work until 2038 A.D.
An average worker would have to work until 2151 A.D.
A minimum-wage earner would have to work until 2355 A.D.


2003 Compensation
Salary $500,000
Bonus $0
Long-Term Incentive Payoffs $0
Restricted Stock Awards $1,905,750
Other Compensation $10,546
Value of Stock Option Grants* $1,363,871
Total 2003 Compensation Plus Stock Option Grants

$3,780,167
Compensation from Prior Stock Option Grants**
Value of Options Exercised in 2003 $13,407
Value of Exercisable Options $0
Value of Unexercisable Options $1,632,938
* Black Scholes present value model as reported in the company's proxy statement.
** Not counted in 2003 compensation totals.
Source: eComp Database - http://www.ecomponline.com

CEO-to-Worker Comparisons
Annual Weekly Daily Hourly Per Minute
Richard H. Anderson $3,780,167 $72,695 $14,539 $1,817 $30
Minimum-Wage Worker $10,712 $206 $41 $5.15 $0.09
Average Worker $25,501 $490 $98 $12.26 $0.20
President of the U.S.A. $400,000 $7,692 $1,538 $192 $3.21


So....I don't see a problem as to a short-term fix for some of Northwest's financial woes. But, will the right-wing bankruptcy courts see it through a worker's eyes??

I doubt it.

12 Comments:

At 2/16/2005 12:54 PM , Blogger Michael Moore-on said...

So here's what I propose: Go find some capital, create your own company, do the research, mortgage your whole world, take all the risks, work hard, hire people, and then pay yourself what you pay them.

I wonder how many companies would be around to do ANY hiring given the above circumstances.

 
At 2/16/2005 4:42 PM , Blogger Amy said...

hmm that's interesting logic Michael, but it doesn't hold water...

The Congressional Budget Office reports that between 1979 and 2000 the wealthiest fifth of households saw their income grow 68.3%, the middle fifth of U.S. households saw their average after-tax income grow only 15%, while the poorest fifth of households income grew 8.7%.

Another article I read recently said that CEO pay from 2001 to 2002 grew 44%.
you can read it here:
Wage gap grows between CEOs and workers, report revealsSo there's the data Michael, refute it.

 
At 2/17/2005 5:55 AM , Blogger Michael Moore-on said...

Amy, have a seat honey, schools in session. Interesting logic? Interesting? What about it doesn't hold water? News flash, YOU live in a a capitalist country, where the sky is the limit for those willing to take the huge risks neccessary to make big money. Along the way jobs are created, and you, as a potential worker living in a free country, can choose whether or not you'll work for anyone. You are not entitled (there's that word you love so much) to anything except that which you negotiate based on merit. After all, if the conditions or pay start to suck, you are free to go elsewhere, at anytime for any reason.

So, feel free to throw any numbers, statistics, etc... you want. The simple fact remains that the same opportunity is afforded to you as to anyone else living in this country. You choose to sit on your ass, while others choose to take huge risks. No balls, no blue chips...

 
At 2/17/2005 7:16 AM , Blogger ProgressivePatriot said...

Sorry, we do not live in a capitalist country. We live in a fascist country.
You have missed the point entirely here. NWA is not owned by a single person but, is controlled by many people. These people screw the workers by stealing their pensions and running off with the money. A fascist principle.

 
At 2/17/2005 7:46 AM , Blogger Michael Moore-on said...

Lib, God knows I luv ya, but that's your opinion on how you see your country, Our business world is based overwhelmingly on capitalism. Don't morph my accurate assertion into a new argument. I happen to agree that if someone steals a pension fund and makes off with it, they should be prosecuted. My continuing argument centers on how many AFL/CIO presidents you can fund with one CEO's pay package. Who cares? How many homeless can you feed on an AFL/CIO president's pay package? It's all relative, and unrelated at the same time.

 
At 2/17/2005 7:46 AM , Blogger Michael Moore-on said...

This comment has been removed by a blog administrator.

 
At 2/18/2005 9:38 AM , Blogger Right On! said...

{Sorry, we do not live in a capitalist country. We live in a fascist country.}

Man, if that's not proof you hate the country you live in, I don't know what is.

Of course I'm sure if someone like Billary Clinton was in the White House, we'd be back in a Capitalist country again :\

 
At 2/18/2005 9:39 AM , Blogger Right On! said...

This comment has been removed by a blog administrator.

 
At 2/18/2005 9:39 AM , Blogger Right On! said...

This comment has been removed by a blog administrator.

 
At 2/18/2005 10:19 AM , Blogger ProgressivePatriot said...

Right-on....I'll forgive your ignorance. Being from Oklahoma is 'hard work' so, education must be an almost impossible feat.

Learn some American history. You can't come to a gunfight with and empty weapon.

 
At 2/18/2005 4:05 PM , Blogger Right On! said...

I swear you must have a Word document with about 10 responses that you just copy and paste from. It has to be a lot of fun being so self-righteous like you are. So I LIVE in Oklahoma, who gives a crap, it has NOTHING to do with my education. I'm plenty educated and I know my country... unlike some people who have utter disdain for the country they live in.

So much so I'd personally escort them to the border.

 
At 2/18/2005 11:09 PM , Blogger ProgressivePatriot said...

So....who have you met that has disdain for their country other than the republicans??
Whatever we, as Americans, do we must defeat the domestic enemy squatting in our WhiteHouse in DC. Those people need to be indicted, prosecuted and executed.
It's called patriotism.

 

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