United’s CEO Oscar Munoz Will Not Become Airline Chairman

Apr 22, 2017

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United Airlines has announced that chief executive Oscar Munoz will not be promoted to the title of Chairman next year as originally planned.

In a proxy filing made Friday with the Securities and Exchange Commission by United Continental Holdings Group, the airline said Munoz had agreed to waive a clause in his contract that had guaranteed him the title next year. Munoz also dropped a contractual option to resign as CEO if he didn’t receive the Chairman position.

United also used the proxy filing to announce that it was changing its executive compensation policy so that it is “directly and meaningfully tied to progress in improving the customer experience.”

The moves come as United continues to deal with the fallout from #BumpGate in which a paying passenger was forcibly removed from a flight in order to make room for the airline’s employees. Many considered Munoz’s original response to the crisis as tone deaf — only later did the executive issue an apology and promise a full investigation. The incident has already led United and other airlines to change their policies on denying boarding to passengers (“bumping”), as United will no longer allow passengers to be removed from aircraft in order to accommodate crew members, and Delta increased its maximum compensation to nearly $10,000 for extreme bumping situations.

But even with these changes, airline incidents continue to pop up in the news and on social media. Last week United was again in the headlines for asking a bride and groom to disembark from a flight to their wedding, and earlier today an American employee had a heated confrontation with a passenger captured on video.

H/T: The New York Times

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