Tilton recommits to United
United Airlines parent UAL Corp extended Glenn Tilton's contract as president, chairman and chief executive for five years, giving him a 40% base salary raise to $850,000 a year, plus incentive awards worth up to $3.4 million.
During United's three years in bankruptcy reorganisation, Tilton cut his salary three times, but accepted restricted shares and stock options equivalent to about a 1% stake in the carrier when it emerged from Chapter 11 in February.
Tilton, 58, has recently predicted the industry is headed for a period of consolidation and the contract extension, replacing a pact that was set to expire in September 2007, should give investors the reassurance of continuity. UAL has reportedly engaged merchant bankers to explore its strategic options.
UAL also promoted 15-year United manager Graham Atkinson to the new position of executive vice-president and chief customer officer. In addition, executive vice-president and chief operating officer Pete McDonald was signed on a four-year contract after he received a competitive offer from another company. McDonald gets a $2.6 million retention bonus, payable over three years, and a base salary of $700,000 a year through October 2010.
Source: Airline Business
