After United Debacle, CEO Munaz Loses Promotion to Chairmanship
United Airlines said it no longer plans to name chief executive Oscar Munoz as its chairman. The airline said it has revised its compensation program following an uproar over its treatment of a passenger.
Munoz and the airline garnered heavy criticism after a passenger was violently dragged off a United flight earlier this month in an incident that sparked global outrage.
That design "is a means to ensure that Mr Munoz is able to more exclusively focus on his role as Chief Executive Officer," it added.
Executive compensation will now depend on "progress in 2017 on significant improvement in the customer experience at United, and aligned changes to United's culture and processes," the filing said.
United has been under fire since video went viral showing security personnel dragging battered and bloodied passenger David Dao off a flight from Chicago to Louisville, Kentucky, to make room for an airline employee.
Munoz apologised for the debacle and said the airline is reviewing its policies and will make further changes. The chief executive was initially lambasted for appearing to suggest Dao was partly at fault for the encounter.
The airline already has announced some policy changes, such as no longer having law enforcement remove customers from overbooked flights.
Munoz was paid USD 18.7 million in 2016, more than three times the USD 5.8 million in 2015, the filing showed.
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