Northwest Airlines Guide to Bankruptcy

CEO ing made simple

1. Buy company with borrowed money.
2. Make your debt the company's debt.
3. Loose billions of dollars
4. Blame the unions
5. Go into bankruptcy
6. Have the court cancel your debt
7. Have the court cut you workers' pay by 40%
8. Have the court give you a $20 Million dollar raise.

Good job CEO!

The Real Story:

St. Paul, Minn. — "If you asked airline industry analysts earlier this month when they expected Northwest might file for bankruptcy, the most common answer was something like, "shortly before Oct. 17." After that date, changes to U.S. bankruptcy law would have made the process less attractive to the company."

Washington Post:
"But despite major cost cuts, Northwest faces intense competition, soaring fuel prices and furious employees who resent forfeiting $1.4 billion annually only to see their bosses net enormous payouts from stock and options awards."

"Employee rage swelled this month when the company revealed a management compensation plan that awards Steenland stock and options potentially worth more than $20 million."

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