Market Minute: Delta Shares Set to Soar; IBM Retires Retiree Health Care

Shares of Delta could take off, and major changes are coming to retirement benefit programs at three of the nation's biggest companies. Those stories and more are what's in Monday's Market Minute.

The Dow Jones industrial average (^DJI) snapped a streak of four straight weekly losses, adding nearly 1 percent last week. The Standard & Poor's 500 index (^GPSC) gained more than 1 percent and the Nasdaq composite index (^IXIC) jumped more than 2 percent.

Delta air lines S&P 500 investing stocks market news
Ted S. Warren/AP
Delta Air Lines (DAL) is being added to the S&P 500. That usually gives a boost to the stock, as mutual funds that track the index have to buy it.

IBM (IBM) is moving 110,000 retirees who are eligible for Medicare off of the company's health plan. Instead, Big Blue will pay them to buy policies from health-insurance exchanges, similar to those set up under Obamacare. IBM says the current, traditional structure would require big premium increases.

Reuters reports that Time Warner (TWX) plans to make a similar move.

And the Labor Department has given AT&T (T) tentative approval to fund its pension plan with nearly $10 billion of preferred stock. That exceeds the federal limit on how much company stock can go into these plans, but it would make the plan nearly fully funded -- something many big companies can only dream about.

Procter & Gamble (PG) is raising the price of its Pampers and Luv diaper brands. It will reduce the number of diapers in each package, effectively increasing the price by 5 to 7 percent.

Johnson & Johnson (JNJ) is reportedly looking to sell its Ortho Diagnostics unit. News reports say the blood testing division could be worth around $5 billion. Abbott Labs (ABT), Danaher (DHR) and two European companies -- Roche Holdings and Siemens -- are the major players in the industry, and may be interesting in bidding.

And after years of negotiations, Apple (AAPL) has reportedly worked out a deal for China Mobile to carry the iPhone, including the low-cost model that Apple is expected to introduce this week. China Mobile has 700 million subscribers.

-Produced by Drew Trachtenberg.

9 PHOTOS
Tech's Highest-Paid CEOs
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Market Minute: Delta Shares Set to Soar; IBM Retires Retiree Health Care
Company: Oracle
Cash compensation: $5.5 million
Stock and options: $90.7 million
Total compensation 1-year change: 24%

Despite his $1 salary, Ellison is not only the highest paid tech CEO this year, but the highest paid of all CEOs.
Most of Ellison's pay comes from his stock grants. In June of 2011 he was given an option to purchase 7 million shares of Oracle (ORCL) common stock.
Company: Yahoo
Cash compensation: $1.6 million
Stock and options: $35 million
Total compensation 1-year change: N/A

Mayer left Google (GOOG) to join Yahoo (YHOO) as its CEO, president and a board member in July of 2012. Her base salary was set at $1 million with an annual bonus target set at $2 million a year.
Though she only took home $6 million last year, Mayer reached No. 2 on this list because she was also offered a one-time retention award when she was hired, consisting of stock grants that could total $30 million when they vest over the next five years.
Company: eBay
Cash compensation: $4 million
Stock and options: $25.7 million
Total compensation 1-year change: 81%

The 81% jump in in Donahoe's salary this year is largely due to a one-time award of about $14.9 million paid in stock. According to a regulatory filing, Donahoe got the grant because he led eBay (EBAY) "successfully through a difficult turnaround ... and positioned it well for additional growth."
Company: Salesforce.com
Cash compensation: $3.2 million
Stock and options: $18.9 million
Total compensation 1-year change: 25%

Benioff's base salary has been set at $1 million for the past two years. He received a $1.3 million cash bonus last year and almost $19 million in Salesforce.com (CRM) stock options and awards. He also received $650,000 to cover costs related to his personal security, which is "of paramount importance to the company," according to a regulatory filing.
Company: AT&T
Cash compensation: $8.4 million
Stock and options: $12.6 million
Total compensation 1-year change: 12%

Stephenson, who has served as CEO and president of AT&T (T) since 2007, was paid a $6 million bonus on top of his $1.6 million base salary in 2012. About $13 million of his pay came in the form of stock and awards.
Company: Qualcomm
Cash compensation: $5.7 million
Stock and options: $15 million
Total compensation 1-year change: -5%


Jacobs was given a $3.4 million cash bonus on top of his $1.2 million salary. Other compensation for the CEO included more than $280,000 for personal use of Qualcomm's (QCOM) corporate aircraft and more than $4,000 for things such as home office costs, personal travel and entertainment.

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Markets

NASDAQ 6,605.07 -19.15 -0.29%
S&P 500 2,562.10 0.84 0.03%
DJIA 23,163.04 5.44 0.02%
NIKKEI 225 21,448.52 85.47 0.40%
HANG SENG 28,159.09 -552.67 -1.92%
DAX 12,990.10 -52.93 -0.41%
USD (per EUR) 1.19 0.01 0.48%
USD (per CHF) 0.98 0.00 -0.49%
JPY (per USD) 112.53 -0.48 -0.43%
GBP (per USD) 1.32 -0.01 -0.41%

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