September 29, 2008
United Pilots: Glenn Tilton’s Excessive Pay Package Must Go
Chicago, Ill., September 29, 2008 – Pilots for United Airlines (Nasdaq: UAUA) today demanded that the UAL Board of Directors cut the pay for its CEO, Glenn Tilton, as a reflection of concern and solidarity with passengers and employees who are being forced to tighten their belts.
At $10.3 million a year, Tilton’s compensation package—including salary, stock grants, options, and other added extras—is the highest in the airline industry. The CEO of American Airlines is paid $4.6 million a year, the CEO of Southwest Airlines makes $1.3 million, and the CEO of JetBlue gets $514,000. United’s pilots believe that there is no justifiable reason for the worst airline executive to be compensated the most. United Airlines has lost more money this year than nearly all other U.S. competitors combined.
“United Airlines is losing money, cutting back on service, and asking passengers to pay more for less,” said Captain Steve Wallach, Chairman of the United Chapter of the Air Line Pilots Association. “It’s time for the Board to tie Tilton’s pay to his performance.”
Captain Wallach said that Tilton’s level of compensation is another example of excessive pay to chief executive officers. “His pay is not an entitlement; he should have to earn his money, just like everyone else does,” said the union leader. Captain Wallach noted United’s stock price has fallen from over $50 a share to the current price of about $10 a share.
“It’s an insult to the loyal passengers and hard-working employees of United to see the CEO pull down this kind of money when the airline is facing such deep challenges,” added Captain Wallach. “This pay package must go.”
Tilton’s excessive pay package is only one of a series of bad decisions by the management of United, which orchestrated fat bonuses for its top executives when the company came out of bankruptcy two years ago. Tilton and his team of executives have continually looked after themselves, to the detriment of the rank-and-file employees of the airline.
“The pilots want to do everything possible to make United the airline that passengers choose first,” said Captain Wallach. “A commitment to responsible service and fairness is part of that.”
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