CEO Jeff Smisek Out;Oscar Munoz new Pres/CEO,Henry Meyer non-ex Chair;FBI case closed
Sep 8, 2015, 5:37 pm
#286
Join Date: Nov 2007
Location: Indiana
Programs: United GS 1.5MM, Hyatt Globalist, Marriott Gold
Posts: 533
im happy he is out of United. I dont care if he goes to jail and that is for the law to decide. But if he is guilty of breaking any law, i hope that not only does he got to jail that he should pay back everything the airline gave him as bonuses. All that should go to the employees who kept the ship afloat.
Just knew he was a snake right from the beginning. He never walked the talk and i am just so glad to see him go.
Just knew he was a snake right from the beginning. He never walked the talk and i am just so glad to see him go.
Sep 8, 2015, 5:38 pm
#287
Join Date: Nov 2013
Location: NYC / TYO / Up in the Air
Programs: UA GS 1.7MM, AA 2.1MM, EK, BA, SQ, CX, Marriot LT, Accor P
Posts: 6,322
Sep 8, 2015, 5:38 pm
#288
FlyerTalk Evangelist
Join Date: Jul 1999
Location: Ewa Beach, Hawaii
Posts: 10,909
If the housecleaning is only limited to Smisek then nothing will change. It is time to fire many of the executive VPs Smisek hand picked as well. The myopic vision of UAL is apparent and the lack of innovation or improvement led by the VP staff is evident. While I am thrilled that Smisek has been fired, unless the VPs go with him UAL will continue to be second rate ..... check that, third rate .... fourth rate .... bottom barrel feeders. That's about right.
Sep 8, 2015, 5:38 pm
#289
Join Date: Nov 2008
Posts: 403
$4.875 Million Severance for Jeff
From the Guardian:
According to the filing, Smisek will receive a payment of $4.875m as severance, in addition to a portion of his performance bonuses received in 2013, 2014 and 2015, which are still outstanding. He will also remain eligible for his bonus this year. In exchange, he is subject to a non-disparagement clause and a two-year-long non-competition agreement in his termination deal. He will also “hold in strict confidence any confidential information related to the companies”.
http://www.theguardian.com/business/...port-authority
According to the filing, Smisek will receive a payment of $4.875m as severance, in addition to a portion of his performance bonuses received in 2013, 2014 and 2015, which are still outstanding. He will also remain eligible for his bonus this year. In exchange, he is subject to a non-disparagement clause and a two-year-long non-competition agreement in his termination deal. He will also “hold in strict confidence any confidential information related to the companies”.
http://www.theguardian.com/business/...port-authority
Sep 8, 2015, 5:39 pm
#290
FlyerTalk Evangelist
Join Date: Aug 2005
Location: BOS/EAP
Programs: UA 1K, MR LTT, HH Dia, Amex Plat
Posts: 32,092
thankfully he is gone. I hope the new guy can turn things around.
Sep 8, 2015, 5:40 pm
#291
Join Date: Jan 2012
Location: Earth
Posts: 19
From the Guardian:
According to the filing, Smisek will receive a payment of $4.875m as severance, in addition to a portion of his performance bonuses received in 2013, 2014 and 2015, which are still outstanding. He will also remain eligible for his bonus this year. In exchange, he is subject to a non-disparagement clause and a two-year-long non-competition agreement in his termination deal. He will also “hold in strict confidence any confidential information related to the companies”.
http://www.theguardian.com/business/...port-authority
According to the filing, Smisek will receive a payment of $4.875m as severance, in addition to a portion of his performance bonuses received in 2013, 2014 and 2015, which are still outstanding. He will also remain eligible for his bonus this year. In exchange, he is subject to a non-disparagement clause and a two-year-long non-competition agreement in his termination deal. He will also “hold in strict confidence any confidential information related to the companies”.
http://www.theguardian.com/business/...port-authority
Sep 8, 2015, 5:41 pm
#292
Suspended
Join Date: Oct 2004
Location: Bay Area
Programs: DL SM, UA MP.
Posts: 12,729
I haven't been around UA long enough to know before and after Smisek.
But while it's great to get rid of a villain, is UA going to change direction under the new CEO?
The new guy was on the board that presumably rubber-stamped all of Smisek's moves, like devaluing the MP program the last few years.
But while it's great to get rid of a villain, is UA going to change direction under the new CEO?
The new guy was on the board that presumably rubber-stamped all of Smisek's moves, like devaluing the MP program the last few years.
Sep 8, 2015, 5:42 pm
#293
Join Date: Jul 2010
Location: DCA
Programs: US CP, DL GM, AA Plat
Posts: 729
Be careful what you wish for guys. A new CEO is going to mean changes to the FF program, which I doubt will be good changes.
Sep 8, 2015, 5:43 pm
#294
Join Date: Jul 2010
Location: Somewhere Over the Rainbow with a Seat in the Fully Reclined Position
Programs: UA Global Services, UA 2 MM, SPG Lifetime Plat, Marriott Plat, Hilton Honors, Hertz #1 Club Gold
Posts: 89
We all may want to be careful with what we wish for because we just may get it (in the end). That last bit is my pontificating. 
This story is by no means wrapped up. The highest profile face and two of his top staff are gone. The only way this happens is with cause and lots of evidence of some form of influence peddling. This is a big no-no when government activity is involved. And, the airline business in America for all carriers involves government activity. Flying this route amounted to a bribe provided to a government employee. Not smart and any compliance team worth it's weight in salt would have flagged it as a problem. Heck, I'd like for UA to fly a few direct routes and adjust departure times but it's never ceded to my direction. Must be nice to head the Port Authority.
These departures also mean the company expects some sizable fines or other punishment from the federal government in court or administrative actions as a result of the acts of those employed by the company. Bottom line, expect much more negative news related to the referenced events over the next several months and for United to have to make some restitution to the government. Read that as any fine or action imposed will have a negative impact on those of us flying UA.
What really irks me are the changes impacting UA perhaps more than any other airline thanks to Mr. Smisek. I was a GS in 2013 and 2014 spending in excess of $40k per year. Then in 2014 after spending in excess of $45k total spend minus taxes and fees my GS was stripped. I requested a review too and never heard a peep from United. Sure it was UA's right to make a decision just as it is mine to make a similar decision. Since then I've cut about 20% of my travel budget by making smarter booking decisions. UA told me how much it appreciated my business and I reciprocated.
Should we expect UA to treat anyone flying its airline, not just GS or 1K, with a reasoned sense of respect? How about making those spiffy GS areas a bit more accessible to the flying public when demand is high and there is no one in said spiffy areas dealing with agents. The last bit is probably too great an ask eh?
Smisek brought about an interesting tenor into how UA deals with its customers. I'm hopeful that some of what I perceive to be a caustic nature will adjust itself. However, I'm not sure it will. I've been down this road with one too many airlines over the years. I hope UA get it's footing but assuming it does, will we be happy with the result? Be careful what we wish for because we just may get it (in the end).
This story is by no means wrapped up. The highest profile face and two of his top staff are gone. The only way this happens is with cause and lots of evidence of some form of influence peddling. This is a big no-no when government activity is involved. And, the airline business in America for all carriers involves government activity. Flying this route amounted to a bribe provided to a government employee. Not smart and any compliance team worth it's weight in salt would have flagged it as a problem. Heck, I'd like for UA to fly a few direct routes and adjust departure times but it's never ceded to my direction. Must be nice to head the Port Authority.
These departures also mean the company expects some sizable fines or other punishment from the federal government in court or administrative actions as a result of the acts of those employed by the company. Bottom line, expect much more negative news related to the referenced events over the next several months and for United to have to make some restitution to the government. Read that as any fine or action imposed will have a negative impact on those of us flying UA.
What really irks me are the changes impacting UA perhaps more than any other airline thanks to Mr. Smisek. I was a GS in 2013 and 2014 spending in excess of $40k per year. Then in 2014 after spending in excess of $45k total spend minus taxes and fees my GS was stripped. I requested a review too and never heard a peep from United. Sure it was UA's right to make a decision just as it is mine to make a similar decision. Since then I've cut about 20% of my travel budget by making smarter booking decisions. UA told me how much it appreciated my business and I reciprocated.
Should we expect UA to treat anyone flying its airline, not just GS or 1K, with a reasoned sense of respect? How about making those spiffy GS areas a bit more accessible to the flying public when demand is high and there is no one in said spiffy areas dealing with agents. The last bit is probably too great an ask eh?
Smisek brought about an interesting tenor into how UA deals with its customers. I'm hopeful that some of what I perceive to be a caustic nature will adjust itself. However, I'm not sure it will. I've been down this road with one too many airlines over the years. I hope UA get it's footing but assuming it does, will we be happy with the result? Be careful what we wish for because we just may get it (in the end).
Sep 8, 2015, 5:44 pm
#295
Moderator: Smoking Lounge; FlyerTalk Evangelist
Join Date: Feb 2004
Location: SFO
Programs: Lifetime (for now) Gold MM, HH Gold, Giving Tootsie Pops to UA employees, & a retired hockey goalie
Posts: 28,878
MODERATOR NOTE
While the subject of this thread is indeed HUGE news and while some/most/many folks are pleased with this news, let's remember to stay on topic and discuss the issue as I've had to delete some posts which were either off topic or were comments directed towards another member
goalie
UA Forum Co-Moderator
While the subject of this thread is indeed HUGE news and while some/most/many folks are pleased with this news, let's remember to stay on topic and discuss the issue as I've had to delete some posts which were either off topic or were comments directed towards another member
goalie
UA Forum Co-Moderator
Sep 8, 2015, 5:51 pm
#296
Suspended
Join Date: Mar 2015
Location: Newport Coast, CA
Posts: 498
How much good is GS membership if your name is Jeff Smisek and everyone at UA knows who you are and most don't like you anyway 
. Plus, you're the definition of unprofitable elite because all of your flights are free! Is Smisek really going to take his business elsewhere if he has bad UA experiences?
. Plus, you're the definition of unprofitable elite because all of your flights are free! Is Smisek really going to take his business elsewhere if he has bad UA experiences? 
Sep 8, 2015, 5:51 pm
#297
Join Date: Jun 2004
Location: Anchorage, AK
Programs: Lifetime AS 1MM & MVPG, AS MVPG100K, AA, DL, HH-G
Posts: 8,259
Got my popcorn and Alaskan Amber. Reading this thread is going to be fun!!!
Sep 8, 2015, 5:55 pm
#298
Join Date: Sep 2002
Location: msp
Programs: AA PLT 3MM, DL PM 2MM
Posts: 1,142
Company Investor Call Tonite
Just listened to Fast Money on TV. Great investor show. The new CEO is TEMPORARY. Drafted ASAP from the Board as current CEO is out. So there will be a search. Overall this is not good news for UA as it underscores a bit of chaos. Let's hope this is a restart button. UA a great (was) airlines. Let's see how the stock does tomorrow. That will tell us a lot of where this airlines is going over the next few months.
Sep 8, 2015, 5:58 pm
#299
Join Date: Feb 2004
Location: State College PA USA
Posts: 42
The Guy Who Introduced Cashew Pieces in First Class
Hello All:
You might recall CEO Smisek took time out of his busy day to herald the MAJOR cost savings UA will make by substituting cashew halves and pieces for the complete version. Such attention to detail and ways to make the airline "more competitive."
Might the new team have greater concerns?
You might recall CEO Smisek took time out of his busy day to herald the MAJOR cost savings UA will make by substituting cashew halves and pieces for the complete version. Such attention to detail and ways to make the airline "more competitive."
Might the new team have greater concerns?
Sep 8, 2015, 5:58 pm
#300
Join Date: Apr 2011
Location: New York
Programs: AA EXP 1.0mm, not sure where I am with hotels these days
Posts: 2,795
I wonder if the position was discussed with Tom Horton, former AA CEO who ran AA while in Chapter 11 very successfully? He may have been a good choice although his rep with unions wasn't good due to his tough position in the reorg.