US Airways leader's pay in '96 was worth $5.79 million Bonus also paid on top of salary, restricted stock

April 04, 1997|By Suzanne Wooton | Suzanne Wooton,SUN STAFF

US Airways top executive Stephen M. Wolf, who was hired to reverse the fortunes of the struggling carrier, received a compensation package valued at $5.79 million last year, excluding a yet to be determined annual bonus.

Wolf, was paid $451,923 in salary and also received 325,000 restricted shares, which at $15.75 each are worth $5.1 million, that can be exercised gradually each January for four years, according to the company's definitive 1996 proxy statement, filed this week with the Securities and Exchange Commission.

In addition, Wolf will receive a bonus ranging from half to all of his annual salary depending on whether he meets or exceeds performance standards. Other compensation included $145,962 in living expenses and tax planning services, plus $74,337 for life insurance and pension benefits.

USAir, now known as US Airways, had disclosed terms of the compensation agreement last year, when Wolf, a former CEO of United Airlines' parent UAL Corp., was hired to take over the company. He succeeded Seth E. Schofield, who received $5.5 million last year in salary, severance pay and benefits, according to the proxy.

Rakesh Gangwal, the carrier's president and chief operating officer, received $330,769 in salary and total compensation of $6.7 million, including restricted stock awards and an annuity the company purchased on his behalf.

Wolf was named head of USAir in January 1996, not long after the carrier had begun to turn around after losing $3 billion in six years. Since becoming its top executive, Wolf has been spearheading the company's move to reduce overlap in its East Coast hub system and build international service at Philadelphia International Airport.

As part of those efforts, US Airways said this week that it would further reduce flights at Baltimore-Washington International Airport and lay off up to 220 part-time and full-time workers there.

The airline also is negotiating with its unions for pay cuts and other concessions that would enable it to launch an operation within US Airways to compete with discount carriers.

Pub Date: 4/04/97

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