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US Air execs can cash out
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August 20, 2001: 11:14 a.m. ET
Chairman, CEO and general counsel can pocket $45M by quitting airline
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NEW YORK (CNNfn) - Top executives of US Airways Group could walk away with an estimated $45 million even though the deal to sell the airline to UAL Corp. has fallen through, according to a Securities and Exchange Commission filing.
The filing, made by the airline Friday, said Chairman Stephen Wolfe, CEO Rakesh Gangwal and General Counsel Lawrence Nagin can elect to leave the company within 30 days of the one-year anniversary of the Oct. 12, 2000, shareholder vote approving the since-scuttled deal, and take the full severance package with them that they would be due if they had been terminated by a new owner.
The proposed $4.3 billion purchase of US Airways (U: down $0.13 to $14.89, Research, Estimates) by United Airlines owner UAL (UAL: up $0.24 to $34.33, Research, Estimates) was dropped in July in the face of opposition from U.S. Justice Department antitrust regulators.
The Wall Street Journal Monday estimated those payments to be worth $16 million for Wolfe, $21 million for Gangwal and $8 million for Nagin. A spokesman for the company had no comment on whether the executives will elect to take the packages and leave the money-losing airline, the nation's sixth largest. Wolfe and Gangwal presented a turnaround plan for the airline to analysts last week, and both are standing for reelection as directors at the shareholder meeting set for Sept. 19.
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According to the proxy, Wolfe received a base salary of $600,000, and other compensation of $7.7 million last year, Gangwal received base pay of $675,000 and other compensation of $7.5 million, and Nagin received base pay of $410,000 and other compensation of $890,529. 
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US Airways
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