Northwest Managers May Gain Stake

Northwest Airlines Corp. said Friday its creditors OK’d a plan to give its top 400 managers 4.9 percent of the equity in the reorganized U.S. airline company.

Sixty percent of the equity will be in restricted stock, valued at about $232 million, with the remaining 40 percent in stock options, the company said.

The equity awards will vest over four years and have value only if management achieves the business plan and Northwest’s stock price appreciates, the No. 5 U.S. carrier said.

Northwest hopes to emerge from U.S. bankruptcy-court protection in June.

United Airlines parent UAL Corp. gave its top 400 managers 8 percent of equity when it emerged from Chapter 11 in February 2006. Delta Air Lines Inc., which hopes to leave bankruptcy next month, plans to give 1,200 managers restricted stock and stock options.

U.S. Bankruptcy Judge Allan Gropper in New York must approve Northwest’s amended disclosure statement.

The Eagan, Minn., airline said its unsecured creditors would recoup 70 cents to 85 cents on the dollar for their claims.