None of Northwest Airlines' top five executives received performance bonuses in 2004, as the carrier posted a $878 million loss. But CFO Bernie Han did get a $100,000 payment that was part of a signing bonus negotiated when he rejoined Northwest in 2002.
Eagan-based Northwest disclosed details of its executive compensation in a filing with the Securities and Exchange Commission Friday.
As Northwest indicated in November, the base pay for its top executive, Doug Steenland, will be $573,750 this year. That's after the 15 percent cut that Northwest executives, managers and other salaried employees took as part of a wage rollback agreement that also involves the airline's pilots. Northwest is still seeking pay and benefit cuts from its other union workers.
Steenland will have a higher base pay than his predecessor, Richard Anderson. In 2004, Anderson's base pay worked out to about $473,000 on an annual basis.
The airline said that Steenland's higher base salary reflects that he holds both the chief executive and president jobs. Anderson, who left Northwest last fall, was its CEO; Steenland, its president.
"Doug's compensation, salary and bonus, for 2004 was less than what he made in 2001," said airline spokesman Bill Mellon. "From 2001 to last fall, he took no raise despite being promoted twice."
Last year, American Airlines President and Chairman, Gerard Arpey, earned $519,000 in base salary and bonuses, said Mellon. United CEO Glenn Tilton's base pay and bonuses totaled $1.8 million. And Southwest CEO Gary Kelly and America West CEO Douglas Parker both received about $550,000 in salaries and bonuses, Mellon said.
In 2004, Steenland received $472,649 in base salary, $27,351 less than in 2003. Last year, Steenland also did not accept $533,250 in incentive compensation due him.
The current base salaries for executive vice presidents Timothy Griffin and Philip Haan is $446,250; and for Bernie Han and Andrew Roberts $361,250, Northwest reported.
Last year, Steenland received restricted stock awards worth about $3 million. They cannot be immediately converted to cash. They vest over several years.
Steenland, Griffin, Haan and Anderson each received about $769,000 from Northwest's sale of shares in Orbitz, the online travel service. The money represented partial settlement of previously granted awards under an e-commerce incentive plan.
