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.
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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.
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.
ADVERTISEMENT
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.