Delta Gifts Employees With Cash, Stock

Law360, New York (May 2, 2007, 12:00 AM EDT) -- On the heels of emerging from bankruptcy, Delta Air Lines has doled out 14 million new company shares and $130 million in cash payments to about 39,000 nonunion employees and 1,000 midlevel managers as part of a cash-and-stock compensation package.

Delta, which flew out of its 19-month stay in Chapter 11 protection on April 30, paid the noncontract employees an average of about $3,200 apiece, or about 8% of their 2006 earnings, while the shares are equal to a 3.5% stake in the company.

The carrier...
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