By Justin Bachman
The Associated Press

NEW YORK - Concerned about corporate excess, Delta Air Lines shareholders Friday approved nonbinding proposals to curb severance payments and expense stock options.

Shareholders at the airline's annual meeting expressed anger over the retention bonuses and other perks Delta's board awarded senior management last year, and chairman and chief executive Leo F. Mullin apologized.

"It is part of my job to be sensitive to the implications of all decisions made at Delta, and in this instance I did not meet that obligation," said Mullin, who cut his salary 15 percent to $596,000 and will forgo any incentive bonuses this year.

Under the severance proposal, shareholders must approve all payments to departing executives that are more than 2.99 times their salary plus bonus. The measure, which had been defeated the past four years, was introduced in response to the lucrative package given to former president, chairman and CEO Ronald Allen in 1997. Delta opposed the proposal, which passed 58.4 million votes to 48.7 million.

The other proposal would require Delta to expense stock options, which the company had also opposed. After the meeting, Mullin said Delta would have no qualms expensing the options after regulators determine how best to value them. That measure passed with more than 65 million votes.

Both proposals require approval by board members to take effect. Delta pilots introduced both measures.

In his remarks, Mullin portrayed an airline industry in shambles with no carrier's future assured. But Delta is likely to emerge from the period intact and prosper, he said.

Delta has cut about 16,000 workers since the 2001 terrorist attacks. Delta reported a first-quarter loss last week of $466 million and said another sizable loss is likely for the spring quarter.

The Delta Air Line Pilots Association is analyzing Delta's finances.