This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Ford's Mulally Can Go Out on Top, Like Delta's Grinstein

At United (UAL - Get Report), Glen Tilton presided over a successful bankruptcy and a 2010 merger with Continental. He served as CEO from 2002 to 2010 and is now chairman.

Like Mulally, Tilton left a 30-year career in one industry to lead a turnaround in another. He put in 30 years at Texaco. Unlike Mulally, Tilton was not popular with employees and didn't embrace reporters.

However, Tilton clearly succeeded in his assignment, and he was well compensated for that. An example is his departure package, valued at $16.8 million, including a $2.7 million discretionary bonus. About a third of the package was in stock, not yet vested, that has declined in value by about $1 million.

At American parent AMR (AMR), a six-year CEO left last month as the carrier entered bankruptcy.

Gerard Arpey distinguished himself as a moral man. He opposed bankruptcy on moral grounds. But by retiring, even after the board asked him to stay, he forfeited any shot at a severance package or long-term incentives.

But American still requires a turnaround. And ironically, although Arpey sought to avoid bankruptcy in which employee salaries and benefits are bound to be reduced, many employees were not fond of him. For proof, just check the comments on this story, written the day AMR filed for bankruptcy and Arpey retired.

Of the three paths, the one paved by Grinstein appears closest to the one traveled by Mulally. That path has idolization at the end of it. But it is worth remembering that corporation's lives, like people's lives, have ups and downs. Mulally's final corporate decision -- regarding the timing of his departure -- could be among his most important.

-- Written by Ted Reed in Charlotte, N.C.

>To contact the writer of this article, click here: Ted Reed

Readers Also Like:

2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BA $122.56 0.00%
DAL $42.01 0.00%
F $11.45 0.00%
UAL $46.86 0.00%
AAPL $94.02 0.00%


Chart of I:DJI
DOW 16,204.97 -211.61 -1.29%
S&P 500 1,880.05 -35.40 -1.85%
NASDAQ 4,363.1440 -146.4150 -3.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs