United CEO Gets $9.65 Million Pay Package


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United CEO Gets $9.65 Million Pay Package
Friday March 28, 7:20 pm ET

NEW YORK (Reuters) - Glenn Tilton (News), who is trying to lead United Airlines Inc. out of bankruptcy, last year received a pay package worth as much as $9.65 million, a securities filing shows.
The chairman and chief executive of the No. 2 U.S. carrier, who was named to those positions last September, received a $312,314 salary and a $3 million bonus for 2002, according to the annual report filed Friday with the U.S. Securities and Exchange Commission (News - Websites) by UAL Corp. (NYSE:UAL - News), United's parent.


The report also shows that Tilton, 54, received $287,000 of restricted stock, $88,683 of other compensation, and 1.15 million stock options with a $1,460,500 hypothetical present value as of the grant date. In addition, UAL paid $4.5 million to three trusts on Tilton's behalf, the filing shows.

Tilton's pay package is larger than the $1.45 million that David Siegel, CEO of U.S. Airways Group Inc. (OTC BB:UAWGQ.OB - News), which is also in bankruptcy protection made last year, according to that carrier's annual report. Siegel's restricted stock and stock options are now worthless, U.S. Airways said.

United, which is based Elk Grove Village, Illinois, filed for Chapter 11 bankruptcy protection from creditors on Dec. 9. On Thursday it said it reached a tentative six-year pact with pilots to save $1.1 billion a year, nearly half of the $2.56 billion of annual labor costs that United said it needs to eliminate.

The New York Stock Exchange on Friday said it will delist UAL shares on April 3 because the stock has traded under $1 per share over a 30-day period. The shares closed Friday at 85 cents, up 1 cent.

In its annual report, UAL also said it expects to post a $900 million operating loss for the first three months of 2003. It lost $307 million in February and $331 million in January.
That is HORRIBLE! If the company is doing good, the CEO should make LOTS, that's fine. However if the company is in bankruptcy they should make a fraction of that. If the other quote of $600 million for labor costs per year is correct (I think pilot602 said it in some other thread... but don't quote me), that means the CEO alone makes a whopping 1/60th of the entire labor combined.

Even if the fiscal impact on the company is nill despite the outrageous salary, the CEO of the company should still 'take a hit', even if that hit is only a sympathy hit (at least it would say... 'hey guys thanks for the effort, I'll pull my weight too').
"Pigs at the Trough!"

This type of practice among company executives will continue forever unless the people of America do something about it. You think Tilton is bad, you should try looking into the dealings under the table of the majority of politicians in the U.S.. Tom Daschle and Trent Lott are the "top sleazy pigs" of the animal farm in Washington D.C.

Try these sites if you want to do something about it:








Take care and fly safe,

It's not terrorism, it's not the busting of the dot com bubble, it's not even the war - it's corporate greed and CRIMINAL behavior of the American CEO that has ruined our economy.

Tyco, Enron, Global Crossing, MCI/Worldcom, UAL, and the list goes on and on. Unfortunately, the guy sitting in the White House won't touch this issue because he's one of them. What did he do when the GAO wanted to see notes on the meeting he and Cheney had with Enron? He seals all presidential records for 12 years, starting with his father's administration, in a direct violation of FOIA and the spirit of our government.

It won't be terrorism or war or disease that screws us it will be our own unbridled greed and selfishness.