Last year, leading attorneys for large U.S airlines collectively garnered almost $50 million, underscoring the significant value these heavily regulated carriers place on internal legal assistance.
United Airlines Holdings Inc. led the pack, awarding president Brett Hart nearly $15 million in total compensation, according to a proxy statement. This comprises $6.4 million in stock awards and approximately $8.4 million in cash, which includes an almost $869,000 base salary and a pro-rated share of a $4 million retention award.
As reported by its proxy filing, Delta Air Lines Inc.’s chief legal officer, Peter Carter – who also served as executive vice president of external affairs – earned upwards of $13.1 million. Delta provided him with $7.3 million in cash, comprising a $4.2 million bonus and a base salary of $617,000. Additionally, Carter received $5.6 million in stock awards.
These compensation packages underscore the critical role of legal professionals amidst a regulatory, union, and consumer-centric landscape that often leads to legal complexities. This month, major airlines sued the U.S Transportation Department over a fee-disclosure rule.
Despite the large pay packages, many legal chiefs accepted pay cuts during the pandemic to support their companies during travel restrictions and lockdowns. “Airlines need to keep compensation competitive to retain top talent, as experienced GCs are worth it and can go elsewhere,” said Clyde & Co partner and former Federal Aviation Administration chief counsel Kenneth Quinn.
Other airline industry’s legal department leaders and their pay packages for 2023, as disclosed in proxy statements, include FedEx Corp.’s Mark Allen ($5.4 million), JetBlue Airways Corp.’s Brandon Nelson ($4.9 million), and Southwest Airlines Co.’s Mark Shaw ($4.2 million).
For more information, take a look at the original article from Bloomberg Law.