Airlines have high prices and are often in the news for the financial struggles the companies face in making a profit with the high costs of fuel, so it is surprising to hear that Delta Air Lines has increased the pay for the CEO, according to the Associated Press.
The CEO of Delta Air Lines received an increase in his total compensation package of 42 percent last year. The airline increased his long-term incentive pay after the airline made more than its competitors.
Richard Anderson's total compensation package was almost $12.6 million, an increase from $8.9 million in 2011, according to an Associated Press calculation that was based on an SEC filing. His pay is split between a cash salary and stock options that only have value if Delta's stock price rises.
The airline paid Anderson $2.7 million as part of an incentive plan, which was an increase of approximately $1 million over the previous year. Additionally, Anderson received $2 million worth of stock options in 2012.
The base salary Anderson receives rose nine percent to reach $652,083. According to Delta, it was the first salary increase Anderson has received since he joined the company as CEO in 2007.
Condensing the number of flights and increasing the number of seats on a plane have had a positive effect on the airline company's bottom line. Last year, Delta made $1 billion in profits. It has done better financially than its competitors, such as United Continental Holdings, Inc., which lost $723 million last year, and American Airlines, which has been reorganizing under bankruptcy protection for the last year.
As Delta's finances improved, it saw the stock rise 47 percent, benefiting from the changing view of investors, who are starting to think that airlines aren't as risky an investment as they were. Consolidation within the industry has helped this view, such as the merger between US Airways and American Airlines, which was announced in February.
This article is copyrighted by Travelers Today, the travel news leader
