Executive Pay at United to Be Tied to Customer Satisfaction
Jackie Reddy April 24, 2017
The carrier is undertaking some drastic soul-searching after the incident that occurred onboard UA Flight 3411 earlier this month.
With the fallout of United Express Flight UA3411 seemingly endless, the carrier is apparently ready to take drastic action in order to improve its public perception and image. In the wake of the incident, the airline has announced that it now intends to implement an executive pay program that is linked to customer satisfaction.
As an additional consequence, City A.M. has revealed that Oscar Munoz, United’s chief executive officer, will not become chairman in 2018. The outlet explains that a previous agreement, a contract which would have seen Munoz assume this title, has now been rendered null. Any future appointments to the role of chairman will be made at the discretion of the carrier’s board.
United has been heavily criticized for the events which took place aboard UA3411 earlier this month, which saw a passenger, Dr. David Dao, violently removed from the flight.
The carrier was also criticized for its handling of the immediate aftermath of UA3411, in which it appeared to blame Dr. Dao for the incident. United, however, then swiftly issued an apology, with Munoz saying in a statement earlier this month that “No one should ever be mistreated this way.”
The carrier explained its decision with regards to executive pay in a filing with the U.S. Securities and Exchange Commission.
“United’s management and the board take recent events extremely seriously, and are in the process of developing targeted compensation program design adjustments to ensure that employees’ incentive opportunities for 2017 are directly and meaningfully tied to progress in improving the customer experience,” it said.
[Photo: Shutterstock]
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This isn't new! According to their SEC filing for 2016, the measure was introduced in 2015. This is just UA's media team re-hashing old policy to make it look like they are being pro active in the face of a full blown crisis. CHECK YOUR FACTS
Of course, the two are not comparable in terms of severity and evilness, or the ability of the discriminated person to opt out of the low status class by buying a first class ticket. And, yes, the violence to the famous dragged out United passenger was not routine, unlike the other situation. But, with allowance for the huge difference in severity, and with apologies to anyone offended by what may have seemed a failure to acknowledge the full extent of the evil of segregation, I do see an analogy where the mindset of some legacy airlines toward their basic economy fare passengers lends itself to looking down on those passengers. I have a hard time seeing how a United passenger in basic economy, let us say a tall person, jammed into a middle seat with his knees close to his chin, having been boarded last, is going to love that United flight. And, suppose this tall passenger, not having flown recently, approaches the gate agent before flight and asks if an aisle seat is available and is told that for an extra $___ he can upgrade to E+, and suppose he declines. Won't there be a tendency on the part of the FA's to look at this man's discomfort with some disdain? I think there are few businesses that offer a spectrum of products, some which most would find markedly uncomfortable or unpleasant, like the legacy airlines do. Suppose a restaurant offered at half-price dishes that were technically safe to eat but had off-flavors. How many 5 star Yelp reviews would it get from the economy customers?
Really? We're going to compare United's treatment of customers based on what they choose to pay to the blatant (and often violent) discrimination against folks because of the melanin concentration in their skin? This is absurd.
This should be very interesting. I am sure United can keep its premium cabin and elite flyers happy if it tries. But how are they going to keep their non-elite, low fare, basic economy passengers happy? The low fare, basic economy passengers are like the "Coloreds" in the old South. Once you are in that category you are constantly reminded of your low status. You board last. You didn't pay for an assigned seat so you get a middle seat. Any problems with a cancelled flight and you are the last person they take care of. Oh, yeah, and unless you bought Economy Plus you are closer to the toilets at the back of the bus, even in the economy section. Does this sound like the service a colored person got at a white owned store in the South in 1960? McDonalds can treat the person ordering a single item off the dollar menu with the same dignity as the person ordering the high-profit sandwich, large fries and large soda. Both customers stand in the same line and it's first come, first served. I'll faint with shock when I see United treat the low fare basic economy passenger with the same dignity as the United elite or premium cabin passenger.