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United Airlines CEO Won’t Be Earning His Full Bonus This Year

United Airlines CEO Won’t Be Earning His Full Bonus This Year
Jeff Edwards

United Airlines CEO Oscar Munoz will reportedly not earn his full scheduled bonus after falling short of key passenger satisfaction metrics in 2018. The airline executive declined his annual bonus one year ago to “send a message about the culture of accountability and integrity” following a series of highly publicized missteps.

In April of last year, CEO Oscar Munoz told United Airlines employees that he would be declining his annual bonus in order to set an example for those under his command. It appears that the United Chief will not be seeing his full bonus this year either, after reportedly missing key customer satisfaction and operational goals.

“We had some incredible successes in 2017 but also some setbacks,” Munoz said in a letter to employees announcing his decision to decline a bonus last year. “I’ve personally learned a lot from all of these experiences, and I am as determined as ever to achieve what we set out to do.”

At the time, Munoz was dealing with fallout from the violent treatment of a passenger at Chicago O’Hare International Airport (ORD) who was brutally removed from an overbooked flight and public outrage following the death of several pets in the airline’s care, including a dog killed when a flight attendant allegedly ordered a passenger to place the animal in an overhead bin. The legacy carrier’s less-than-distinguished year also led to the abrupt departure of United Chairman Robert Milton and in response, the board added passenger satisfaction targets to the bonus structure for senior executives.

In 2018, Munoz announced he was foregoing his bonus in an effort to “send a message about the culture of accountability and integrity.” This year, however, Skift reports that rather than the grand gesture of an airline executive falling on his sword, Munoz will lose a portion of his bonus to bar graphs and customer surveys.

“While progress has been made, the company had not yet achieved the desired levels of customer satisfaction,” the United Continental Holdings board revealed in recent proxy filings obtained by Skift. While the CEO met or exceeded goals for financial performance and most operational targets, his management team reportedly fell short of the newly added customer satisfaction goals.


[Image Source: United]

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1 Comment

  1. AAdamE

    May 30, 2019 at 9:26 am


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