Northwest CEO to Get Big Stock Award

Northwest Airlines(NWACQ:Nasdaq) CEO Doug Steenland will receive a $26.6 million worth of new stock and stock options in the carrier when it emerges from bankruptcy next month, according to weekend media reports.

The Eagan, Minn.-based airline said Friday in a bankruptcy filing that it plans to give Steenland restricted stock with a grant date value of $20.8 million and stock options worth $5.8 million, the Associated Press reported. Both will vest over four years.

Northwest also said four executive vice presidents (Neal Cohen, Tim Griffin, Andy Roberts and Phil Haan) would each get $10 million to $13.5 million in new stock, according to AP.

Northwest plans to cancel its existing common stock when it emerges from bankruptcy. Shares ended Friday at 15 cents. The airline has said that employees will have a 20% interest in the airline as a result of bankruptcy claims and profit sharing.

The airline said Friday that the stock awards would help it recruit and keep executives, according to AP.

But its pilots union reacted critically. "Mr. Steenland grossly overreached and missed another opportunity to share the gain with the employees whose excessive concessions funded the airline's turnaround,? said a statement from Dave Stevens, who chairs the Master Executive Council of Northwest's branch of the Air Line Pilots Association.

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