Final Tab for Smisek: $37 Million
Joe Cortez May 04, 2016
Exit package includes company car, flight benefits, and free parking.
Former United Airlines chief executive Jeff Smisek will receive a benefits package of $37 million from his former employer, which will include his company car and free flying with the airline. In a Securities and Exchange Commission filing, the total benefits were announced for the first leader of the legacy carrier after merging with Continental Airlines.
Under the deal, Smisek will receive a cash payment of $4.875 million as a separation payment, in addition to other financial considerations. The additional considerations include performance incentives, vested restricted shares, and health insurance until he turns 65. In addition, the former executive will also keep his company car, titled to him after leaving the company.
His benefits package will also include flight benefits aboard United for the rest of his life. The Los Angeles Times reports Smisek will also receive free airport parking at both of United’s major hubs in Chicago and Houston.
Smisek was one of three executives pushed out at United Continental Holdings in the midst of a Federal Bureau of Investigation corruption probe at Newark Liberty International Airport (EWR). During an investigation into the alleged closing of lanes on the George Washington Bridge in 2013, authorities claimed the airline was linked to a former Port Authority chairman, alleging that United operated an unprofitable flight specifically for the chairman in exchange for upgrade considerations EWR.
The benefits package also comes with several stipulations that Smisek must uphold as well. In addition to maintaining confidential trade secrets entitled to him, the former executive must also cooperate with investigators or potential legal actions. Smisek can also lose his benefits package if he is convicted or pleads no contest to “any felony or any crime involving moral turpitude which conviction or plea relates to or arises from Mr. Smisek’s service with [United Continental Holdings].” The airline has not publicly commented about the severance package.
[Photo: examiner.com]
Not to mention destroying a hub to make EWR appear better.
Listening to the Grateful Dead's "He's Gone" as I read this post. Having him gone, priceless.
Smisek has done much to destroy United - chased away high spend/profit customers with a poorly implemented first class upgrade process, chased away "over entitled" elites, and significantly devalued Star Alliance by allowing US Airways to leave and acquire AA, etc.
Wow! He deserves every penny exactly along the lines Stan O'Neal got at Merrill for destroying a storied name.
haha love how after 37 million, he is still getting a freaking car AND free parking too.