Wednesday, June 18, 2008

The Rising Cost of Kline's Voting Record

While NWA is tightening it’s belt by laying off workers, charging more, outsourcing jobs and reducing benefits, CEO Steenland is still making millions and all with Rep. John Kline’s support.

Rep. Kline voted not to support a bill (HR 1257) that would permit shareholders in public corporations to cast an advisory non-binding vote to approve or disapprove executive pay packages, golden parachutes and gigantic pay bonuses even after they show a poor performance like Steenland has running NWA for years without a profit and including bankruptcy!

NWA is reducing both capacity and staff according to Steenland who cited rising oil costs. So expect NWA to raise fares, fees, fuel surcharges and what you pay for drinks. In essenses, while we pay more for less, Steenland still receives millions.

I’ve written about Kline and Steenland before here and here. Since taking NWA through bankruptcy Northwest Airlines CEO Doug Steenland’s contract gives him an unusual one-month window to voluntarily leave the airline while collect a special payment of close to 8 million dollars (7.8 to be exact!). Can you say ‘golden parachute’? And, If NWA merges with Delta the payoff would be around 22 million. His compensation last year was $27 million (although much of that evaporated with the airline’s sinking share prices). Still his compensation was in the millions.

How can Kline say he's fiscally responsible when his vote record tells us another story?

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