United Continental says CEO Oscar Munoz won't become chairman as planned
Apr 21, 2017, 3:09 pm
#1
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United Continental says CEO Oscar Munoz won't become chairman as planned
According to CBS Marketwatch
Last edited by WineCountryUA; Apr 21, 2017 at 3:13 pm Reason: Title updated to refect news reports
Apr 21, 2017, 3:11 pm
#2
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Apr 21, 2017, 3:11 pm
#3
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That's not what the article says at all. He is no longer a shoe-in to be chairman of the board, instead leaving it up to the board's discretion. He is still very much the CEO.
Apr 21, 2017, 3:12 pm
#4
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What I find is
United Continental says CEO Oscar Munoz won't become chairman as planned
United Airlines: CEO Oscar Munoz will not take chairman position
Remains, for now as, CEO but previous advancement to Chair of the BoD is now an open issue
United Continental says CEO Oscar Munoz won't become chairman as planned
United Airlines: CEO Oscar Munoz will not take chairman position
Remains, for now as, CEO but previous advancement to Chair of the BoD is now an open issue
Apr 21, 2017, 3:35 pm
#5
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How long till Oscar retires?
Oscar hit it off with Labor and was initially a good public face for United. His MI and return had a feel good quality to it.
The last two weeks though have shown that he really has no idea of how to run a customer service business, and his public image had been really hurt.
I don't think he is "fired", I think they will keep him around for the next few years to interact with labor, but I see power moving away from him.
Kirby has really spoken up both to employees (the JFK comments) and on the 1Q call. Reading the transcript and he is clearly now able to speak up and criticize decisions that were taken by Smisik, when Oscar was on the BoB.
I think this is another shoe to drop...
p.s. the Chris Christy comments in CNN video in the second link you posted WCUA are priceless. When Chris Christy goes after you, your days are done. No more snack mix for you....
The last two weeks though have shown that he really has no idea of how to run a customer service business, and his public image had been really hurt.
I don't think he is "fired", I think they will keep him around for the next few years to interact with labor, but I see power moving away from him.
Kirby has really spoken up both to employees (the JFK comments) and on the 1Q call. Reading the transcript and he is clearly now able to speak up and criticize decisions that were taken by Smisik, when Oscar was on the BoB.
I think this is another shoe to drop...
p.s. the Chris Christy comments in CNN video in the second link you posted WCUA are priceless. When Chris Christy goes after you, your days are done. No more snack mix for you....
Apr 21, 2017, 3:56 pm
#6
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There is also a WSJ article about this now (pay wall)
https://www.wsj.com/articles/united-...018-1492806979
However, an interesting note is
Maybe people will be more friendly when execs up in Willis Tower see less money than they are use to!
https://www.wsj.com/articles/united-...018-1492806979
However, an interesting note is
In a federal filing on Friday, United said its board is planning to adjust managerial incentive compensation to focus more on performance measures related to customer service.
Apr 21, 2017, 4:16 pm
#8
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A few more quotes from the WSJ article:
Also of note, UA's AGM is scheduled for 24 May at the Willis Tower in Chicago. I imagine this meeting may have a few interesting moments.
Originally Posted by Wall Street Journal
United said its board believes separating the roles of CEO and chairman “is the most appropriate structure at this time” and is “a means to ensure that Mr. Munoz is able to more exclusively focus on his role as CEO,” while an independent chairman can manage relations between the board and the CEO.
United also said its management and board “take recent events extremely seriously” and are in the progress of changing its compensation structure so incentives in 2017 “are directly and meaningfully tied to progress in improving the customer experience and in the necessary cultural and process changes in support of this goal.”
Mr. Munoz received $18.7 million in total compensation last year. His salary was $1.19 million. Amid the $13.8 million in stock awards he received was a restricted share award of $6.8 million related to his 2015 employment agreement, which was signed at the end of the year and thus the payment shows up in 2016 compensation.
Mr. Milton, a former CEO of Air Canada, joined United’s board just over a year ago and as a proxy-fight settlement was elevated to nonexecutive chairman for two years. Mr. Munoz initially was slated to add that post this year, and then that plan was pushed back to 2018.
United also said its management and board “take recent events extremely seriously” and are in the progress of changing its compensation structure so incentives in 2017 “are directly and meaningfully tied to progress in improving the customer experience and in the necessary cultural and process changes in support of this goal.”
Mr. Munoz received $18.7 million in total compensation last year. His salary was $1.19 million. Amid the $13.8 million in stock awards he received was a restricted share award of $6.8 million related to his 2015 employment agreement, which was signed at the end of the year and thus the payment shows up in 2016 compensation.
Mr. Milton, a former CEO of Air Canada, joined United’s board just over a year ago and as a proxy-fight settlement was elevated to nonexecutive chairman for two years. Mr. Munoz initially was slated to add that post this year, and then that plan was pushed back to 2018.
Apr 21, 2017, 4:28 pm
#9
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There is also a WSJ article about this now (pay wall)
https://www.wsj.com/articles/united-...018-1492806979
However, an interesting note is
Maybe people will be more friendly when execs up in Willis Tower see less money than they are use to!
https://www.wsj.com/articles/united-...018-1492806979
However, an interesting note is
Maybe people will be more friendly when execs up in Willis Tower see less money than they are use to!
Apr 21, 2017, 4:33 pm
#10
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If the news releases are true (a big "if", as always), it appears Oscar doesn't want the title.
Okay by me since I don't particularly like CEOs also being chairman.
Nah, you're describing the DL CEO. On the contrary, Oscar has shown that has a service mindset--maybe too much so. An isolated incident happens, and Oscar might go too far trying to make up for it. The 60 minute rule is already a negative for customers.
Okay by me since I don't particularly like CEOs also being chairman.
Nah, you're describing the DL CEO. On the contrary, Oscar has shown that has a service mindset--maybe too much so. An isolated incident happens, and Oscar might go too far trying to make up for it. The 60 minute rule is already a negative for customers.
Apr 21, 2017, 4:43 pm
#11
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and I think the public also disagrees. According to a PPP poll, -In 2013 United had a +20 net favorability rating (33/13). It's dropped a net 44 points to -24 at 23/47 as of today.
- When we asked who people thought the worst airline in the country was in 2013 UA was closely bunched with American getting 10%, Delta 9%, United 8%, and Southwest 6%. Today, United 'wins' by a wide margin with 40% saying it's the worst airline to 10% for
American, 8% for Southwest, and 6% for Delta.
- Currently 35% say SWA is the best airline, 20% for Delta, 14% for American, and just 4% for United.
- Delta has seen an improvement in its image since 2013- it went from a +22
favorability at 35/13 to a +31 one at 45/14.
Apr 21, 2017, 4:58 pm
#12
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Not sure about UA right now, but I'm pretty sure AA and DL would beat WN handily around here.
Apr 21, 2017, 6:01 pm
#13
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WN gives everyone free bags, and from a customer standpoint is "friendlier." they also fly real planes into airports that AA/UA/DL only fly small RJs.
If I was flying once or twice a year, with kids and bags, WN would look a lot nicer too...
Apr 21, 2017, 6:02 pm
#14
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Not really sure how this is going to help or hurt but Oscar will not be the Chairman of the Board in 2018. He will remain as CEO
https://www.aol.com/article/finance/...enge/22049963/
https://www.aol.com/article/finance/...enge/22049963/
Apr 21, 2017, 6:06 pm
#15
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Like here in Chicago, I would never take a flight out of MDW, simply because it's farther from the north suburbs. From a frequent flyer perspective, their miles are worth less to me since they do not have any airline partners to redeem for international travel.