CEO Timothy Hoeksema will accept a pay cut of 40% as Midwest Airlines attempts to cut costs. From The Business Journal of Milwaukee:
“Our cost structure today, in advance of this restructuring, resembles that of airlines much larger than we are, with national and even global networks, flying larger aircraft,” Hoeksema wrote to employees.
“Following our restructuring, we will not have the larger aircraft and revenue generation capacity to support our current cost structure. Even the exemplary service you provide and the customer loyalty it engenders cannot overcome this disadvantage in the new energy environment of $140-a-barrel oil.”
Midwest must decide whether to “fix this disparity so our costs better match our revenues, file for Chapter 11 and try to fix it there, or ignore it and fail as a business,” he added.
…”This reflects our belief as a management team that we should lead by example and that we bear ultimate responsibility for keeping our airline competitive,” Hoeksema said.
Hoeksema’s salary was about $405,000 in 2007, and he received a bonus of about $446,000 in 2006.
Midwest CEO to take 40 percent salary cut; other employees see pay reduced [bizjournals] (Thanks, Everyone!)