Mesa Board Stengthens Management Support

After losing in Hawaiian’s suit against it, Mesa Air Group’s board of directors reiterated its support of management, saying the challenges facing the company called for a demonstration of support for the management. Related Story The board approved certain amendments to the employment agreements for its Chief Executive Officer Jonathan G. Ornstein, its President and Chief Operating Officer,Michael J. Lotz, and its Executive Vice President and General Counsel Brian S. Gillman extendng the terms of their respective employment agreements for an additional three years. Gillman also received an increase in his base salary to $190,000 and is now entitled to an annual deferred compensation payment of $50,000, which will also be payable through the remaining term of his employment agreement in the event of a change in control of the company. Any change in compensation for Ornstein and Lotz were not outlined in the company's SEC filing.
"Ten years ago, when I joined the board and Jonathan Ornstein and Mike Lotz joined Mesa, the company had revenue of $423 million and had lost $54 million in the previous fiscal year,” said Dan Altobello, the lead director of the board. “Since that time we have grown to over $1.4 billion in revenue, and since 9/11 earned operating profits on a pro-forma basis in 26 of 27 quarters, regained our partnership with United Airlines, formed a new partnership with Delta, added approximately 150 regional jets to our fleet, named Regional Airline of the Year in 2005 and provided unsurpassed job security and opportunity for our employees. All this was achieved during what has to have been the most difficult environment for airlines in history. The board strongly believes that, given the challenges the company faces today, it was important to demonstrate our support of management and to ensure the continuing services of Jonathan, Mike and Brian. We are similarly pleased that these members of our executive team have indicated their long-term commitment to the company by agreeing to extend the terms of their employment agreements for the additional three years."