ATLANTA -- Leo Mullin, the leader of Delta and the point man for
the U.S. airline industry on security costs, has decided to retire.
Mullin, 60, will step down as CEO Jan. 1 and as chairman April
23 before officially retiring May 1, the airline said Nov. 24.
Mullin, who took charge of Delta in 1997, called the retirement
a "deeply personal decision" but didn't explain further.
In a memo to employees, Mullin touted the airline's financial
turnaround in the late 1990s, its role in the launch of Priceline, the
formation of the SkyTeam Alliance, and its expansion of Latin
America service.
He also praised employees for persevering in the aftermath of
Sept. 11, but he added Delta's financial performance "continues to
require massive improvement" that will entail employee help, "a
possible reference to negotiations currently under way with pilots,
to cut costs.
Not surprisingly, Mullin didn't mention the flak he took for
receiving a $1.4 million bonus in 2002. Mullin subsequently gave up
future bonuses and 25% of his salary. His retirement benefit is
valued at $16 million.
Mullin's immediate successor as CEO will be Gerald Grinstein, a
former airline and railroad executive who has been on Delta's board
for 16 years.
Grinstein, 71, was Western Airlines' CEO from 1985 until March
1987, when Western merged with Delta. He has been on Delta's board
since the merger, and served as its non-executive chairman from
August 1997 until October 1999.
John Smith Jr., 65, former chairman and CEO of General Motors
and a Delta board member since 2000, will become Delta's
non-executive chairman April 23.
In his memo to employees, Grinstein pledged to work with them
but also called it "an urgent task to get our costs down close to
the levels of our competition so that we, too, can prosper in the
new low-fare world."
As Delta's CEO, Grinstein will receive a $500,000 annual salary;
Smith will receive an annual retainer of $200,000.
To contact reporter Andrew Compart, send e-mail to [email protected].