In wake of passenger-dragging incident, United CEO won't automatically become chairman
- Author: Zachary Reyes Apr 25, 2017,
Apr 25, 2017, 15:16
CEO Oscar Munoz's employment agreement with United Airlines has been changed after his handling of the forced removal of a passenger from an aircraft.
The US-based company also said that their Chief Executive Officer, Oscar Munoz is not going to become the chairman of the board now as anticipated. The change was disclosed in a regulatory filing Friday, and it comes in the wake of a media storm following a United passenger being forcibly removed from a flight at O'Hare International Airport earlier this month. "Having an independent Chairman of the Board is a means to ensure that Mr. Munoz is able to more exclusively focus on his role as Chief Executive Officer".
A section in the SEC documents about employee compensation said the management and the board "take recent events extremely seriously" and are working to more closely tie future compensation incentives to "improving the customer experience".
United had previously expected to appoint Munoz to chairman of its board at the company's 2018 shareholders meeting.
Chief Executive Officer of United Airlines Oscar Munoz introduces a new global business class dubbed United Polaris in New York June 2, 2016.
David Dao, a Kentucky doctor, was dragged from his seat after refusing to give it up when United staff told him he was being bumped from the sold-out flight to make room for staff members that needed to travel.
The lawyer representing the man who was video recorded being dragged off a United Airlines flight is now representing the mother who was involved in another incident - this one aboard an American Airlines flight.
United was due to answer detailed questions about the incident at a Senate panel on Friday, but the airline requested a further week's postponement.
Demetrio said in the CNBC interview a settlement had not yet been discussed with United over the incident in which Dao lost two front teeth, broke his nose and suffered a concussion. United Continental Holdings Inc's top executive, who has struggled to tamp down a public-relations fiasco over a roughed-up passenger, earned US$18.7 million (RM82.2 million) in 2016 as he collected a multimillion-dollar signing award.