One Reason Why United is F'd Up

bigredvmi · 10-27-2002, 11:27 PM

Got to love pure GREED ... after all the sh*t that has happened over the last year this guy still has the balls to pay him self $4million.

Bonus for UAL's New CEO
Totals $3 Million, Filing States

By SUSAN CAREY
Staff Reporter of THE WALL STREET JOURNAL

CHICAGO -- Glenn Tilton, a longtime oil-company executive who joined UAL Corp. on Sept. 5 as chairman and chief executive officer, received a $3 million signing bonus and an annual salary of $950,000, the United Airlines parent reported Friday in a Securities and Exchange Commission filing.

UAL also said in the SEC filing that if interest rates fall and the market value of assets held in its defined-benefit pension plans continues to decline, it believes it will be required to record a pension liability likely to exceed $1.5 billion before tax, as of Dec. 31. The company said it also could be required to contribute about $5 billion to its defined-benefit pension-plan trusts by the end of 2008. UAL said the expected $1.5 billion reduction in shareholders' equity won't affect the financial covenants in any of its debt agreements.

UAL, which is in severe financial difficulty and is preparing for the potential of a bankruptcy-court filing, is seeking $1.8 billion in government loan backing so it can borrow $2 billion. It needs the cash because it faces nearly $1 billion in debt and interest payments before year end and believes it is largely shut out of the public capital markets.

Without the federal loan guarantee and cost reductions necessary to win that government aid, UAL said it "does not expect to be able to raise sufficient liquidity to support its obligations through the end of 2002."

Mr. Tilton's five-year contract entitles him to potential target bonuses equal to three times his salary, 100,000 shares of restricted UAL stock, and $4.5 million in a fully funded pension trust, the company disclosed in the SEC filing. Mr. Tilton, a former vice chairman of ChevronTexaco Corp., also received 10-year options grants to purchase a total of 1.15 million shares of UAL at $3.03 a share, with the grants exercisable over four years.

The executive's predecessor, Jack Creighton, received no salary or bonus -- just options for 400,000 UAL shares at a strike price of $14.48 a share. But Mr. Creighton was an interim chief, plucked by the board to take over after the previous CEO was forced out in late 2001. That executive, Jim Goodwin, had an annual salary of $900,000.

At 4 p.m. Friday in New York Stock Exchange composite trading, UAL shares were up 11%, or 25 cents, at $2.59.

Sentinel Chicken · 10-27-2002, 11:41 PM

Pity that some of these corporate suits probably couldn't tell the difference between a 727 and a 747. That's one problem, there aren't many aviation guys running the airlines now- they're all mostly corporate pencilnecks who pass through the revolving doors of corporate America lining their pockets with golden parachutes and outrageous bonuses.

I'd like to take a field trip and visit the office of each and every airline CEO and I'll bet y'all good clams and a case of Shiner Bock that most of those offices don't even have a picture of an airplane in it, much less a model of one.

Travelin' Man · 10-28-2002, 01:59 PM

Hey the guy has to feed his family. Problem is no one would touch the CEO position of UAL without such a compensation plan.

I think the UAL board made an bad move hiring a former Dynegy Executive to run their company. I guess he did such a good job running that company into the ground, he will do even better with UAL?

I agree Doc, if you are going to run an airline, you need someone with real Airline experience. Look at Continental, at lest their CEO can land a fully loaded 757-200 because Gordo is a fully certified pilot! Gee what a concept.

At the least, an airline CEO should be able to know what happened at Macho Grande!

All these corporate MBA's with their lack of business ethich have run this economy into the ground. Thank the MBA's for screwing the poor hard working folks in this country with all the new bank fee's, non-refundable economy class airline ticket, and stock market scams. Blame Osama all you want, but the real reason this economy is in the toilet is all the dumb a** MBA's in corporate America.

Westjetter · 10-28-2002, 08:42 PM

I think its horrible to have that much money paid out when you are laying off employees! Wasnt there a CEO (Delta Maybe) who forfited and entire years pay after sept 11?

AASuper80 · 10-29-2002, 10:11 AM

It was Don Carty the AA CEO that gave up his remaining salary and I also believe the AA board of director followed suit.

Bill G · 10-29-2002, 11:10 AM

Well maybe good ol' Don can send his salary to the former TWA employees that AA screwed out of their jobs.
The only fair way to merge employees is "Date of Hire". This is an insult to the industry.
I understand that the TWA employees have a Class Action Lawsuit against American and I hope to heck they win it.
AA can also give me back my lifetime passes that they promised not to take away but did.

Bill G

Sentinel Chicken · 10-29-2002, 12:25 PM

Ahhh, the eternal contentious question of how to merge two employee workforces in an industry where seniority is important. I don't know of any airline that's done that successfully to the satisfaction of both parties. Just look at Pan Am's acquistion of National as a example of how bad it can get- they introduced Blue and Orange teams and sloppily tried to integrate them that left Pan Am with labor issues that contributed to their demise. A group of Pan Am's employees filed lawsuits that went as far as the Supreme Court if I remember right.

There's a rumor here in the DFW area that Crandall is making a play to unseat Uncle Don and return to the helm of American as he's pissed off at what's been done so far at American.

Strange times these are when people would welcome Crandall back.

Scott · 10-29-2002, 08:16 PM

The ghost of Crandall to return?! My buddies at AA had a saying about Bob indicative of the love/hate relationship: "He's an a$$hole, but he's OUR a$$hole". I've seen him make appearances on news talkshows; it was a mighty fine dentist or oral surgeon that reduced his incisors from fangs to a benign look.
Seriously, look at old photos and you'll know what I'm saying!

I'll hold my fire regarding Glenn Tilton's compensation. If he can engineer a turn-around the pay is chump change. If he leads a bankruptcy.... well my opinion will surely change!!

Sentinel Chicken · 10-29-2002, 11:37 PM

Crandall's old nickname was "Fang"- when he came to the helm at AMR/American, somewhere during his tenure he went to a cosmetic dentist I think here in Dallas and got his canines filed down. There are a lot of AA employees I hear from that would take him over Carty anyday. Uncle Don's days are numbered at American- whether it's Crandall that makes the play to take his office back or not is up to a lot of speculation these days.

One thing's for sure about Crandall- the man was a f*cking genius in the industry but a real sociopathic as*hole.

I, too, have heard the stories on the grapevine about TWA employees filing suit. I can't say that I blame them. What message does it send when a TWA FA with 27 years is laid off while some AA FA with only 2 years stays nice and smug? The sad fact of the matter is that with the current cutbacks and layoffs at American, it's the TWA employees who are taking in square in the nuts.

Look for a big shake ups at American starting in January.

10-27-2002, 11:27 PM	#1
bigredvmi Master Collector Join Date: May 2002 Location: Michigan Posts: 786	One Reason Why United is F'd Up Got to love pure GREED ... after all the sht that has happened over the last year this guy still has the balls to pay him self $4million. Bonus for UAL's New CEO Totals $3 Million, Filing States By SUSAN CAREY Staff Reporter of THE WALL STREET JOURNAL CHICAGO -- Glenn Tilton, a longtime oil-company executive who joined UAL Corp. on Sept. 5 as chairman and chief executive officer, received a $3 million signing bonus and an annual salary of $950,000, the United Airlines parent reported Friday in a Securities and Exchange Commission filing. UAL also said in the SEC filing that if interest rates fall and the market value of assets held in its defined-benefit pension plans continues to decline, it believes it will be required to record a pension liability likely to exceed $1.5 billion before tax, as of Dec. 31. The company said it also could be required to contribute about $5 billion to its defined-benefit pension-plan trusts by the end of 2008. UAL said the expected $1.5 billion reduction in shareholders' equity won't affect the financial covenants in any of its debt agreements. UAL, which is in severe financial difficulty and is preparing for the potential of a bankruptcy-court filing, is seeking $1.8 billion in government loan backing so it can borrow $2 billion. It needs the cash because it faces nearly $1 billion in debt and interest payments before year end and believes it is largely shut out of the public capital markets. Without the federal loan guarantee and cost reductions necessary to win that government aid, UAL said it "does not expect to be able to raise sufficient liquidity to support its obligations through the end of 2002." Mr. Tilton's five-year contract entitles him to potential target bonuses equal to three times his salary, 100,000 shares of restricted UAL stock, and $4.5 million in a fully funded pension trust, the company disclosed in the SEC filing. Mr. Tilton, a former vice chairman of ChevronTexaco Corp., also received 10-year options grants to purchase a total of 1.15 million shares of UAL at $3.03 a share, with the grants exercisable over four years. The executive's predecessor, Jack Creighton, received no salary or bonus -- just options for 400,000 UAL shares at a strike price of $14.48 a share. But Mr. Creighton was an interim chief, plucked by the board to take over after the previous CEO was forced out in late 2001. That executive, Jim Goodwin, had an annual salary of $900,000. At 4 p.m. Friday in New York Stock Exchange composite trading, UAL shares were up 11%, or 25 cents, at $2.59. __________________ - Drew Sell crazy somewere else were all stocked up here*

10-27-2002, 11:41 PM	#2
Sentinel Chicken Go-Getters Go Ozark Join Date: Jan 2001 Location: DFW/THE GREAT STATE OF TEXAS Posts: 4,167	Pity that some of these corporate suits probably couldn't tell the difference between a 727 and a 747. That's one problem, there aren't many aviation guys running the airlines now- they're all mostly corporate pencilnecks who pass through the revolving doors of corporate America lining their pockets with golden parachutes and outrageous bonuses. I'd like to take a field trip and visit the office of each and every airline CEO and I'll bet y'all good clams and a case of Shiner Bock that most of those offices don't even have a picture of an airplane in it, much less a model of one. __________________ *Piss on noise abatement!*

10-29-2002, 11:10 AM	#6
Bill G Insane Collector Join Date: Aug 2000 Location: St. Charles, MO Posts: 1,248	Well maybe good ol' Don can send his salary to the former TWA employees that AA screwed out of their jobs. The only fair way to merge employees is "Date of Hire". This is an insult to the industry. I understand that the TWA employees have a Class Action Lawsuit against American and I hope to heck they win it. AA can also give me back my lifetime passes that they promised not to take away but did. Bill G __________________ *Ozark Flies Your Way* FEES DON'T FLY AT SOUTHWEST

10-29-2002, 12:25 PM	#7
Sentinel Chicken Go-Getters Go Ozark Join Date: Jan 2001 Location: DFW/THE GREAT STATE OF TEXAS Posts: 4,167	Ahhh, the eternal contentious question of how to merge two employee workforces in an industry where seniority is important. I don't know of any airline that's done that successfully to the satisfaction of both parties. Just look at Pan Am's acquistion of National as a example of how bad it can get- they introduced Blue and Orange teams and sloppily tried to integrate them that left Pan Am with labor issues that contributed to their demise. A group of Pan Am's employees filed lawsuits that went as far as the Supreme Court if I remember right. There's a rumor here in the DFW area that Crandall is making a play to unseat Uncle Don and return to the helm of American as he's pissed off at what's been done so far at American. Strange times these are when people would welcome Crandall back. __________________ *Piss on noise abatement!*

10-29-2002, 08:16 PM	#8
Scott Insane Collector Join Date: Mar 2000 Location: Escondido, Ca. USA Age: 50 Posts: 2,763	The ghost of Crandall to return?! My buddies at AA had a saying about Bob indicative of the love/hate relationship: "He's an a$$hole, but he's OUR a$$hole". I've seen him make appearances on news talkshows; it was a mighty fine dentist or oral surgeon that reduced his incisors from fangs to a benign look. Seriously, look at old photos and you'll know what I'm saying! I'll hold my fire regarding Glenn Tilton's compensation. If he can engineer a turn-around the pay is chump change. If he leads a bankruptcy.... well my opinion will surely change!! __________________ Fly the Friendly Skies of United uniTED takes wing Feb 12, 2004

10-28-2002, 01:59 PM	#3
Travelin' Man Insane Collector Join Date: May 2000 Location: Aspen USA!!! Posts: 1,919	Hey the guy has to feed his family. Problem is no one would touch the CEO position of UAL without such a compensation plan. I think the UAL board made an bad move hiring a former Dynegy Executive to run their company. I guess he did such a good job running that company into the ground, he will do even better with UAL? I agree Doc, if you are going to run an airline, you need someone with real Airline experience. Look at Continental, at lest their CEO can land a fully loaded 757-200 because Gordo is a fully certified pilot! Gee what a concept. At the least, an airline CEO should be able to know what happened at Macho Grande! All these corporate MBA's with their lack of business ethich have run this economy into the ground. Thank the MBA's for screwing the poor hard working folks in this country with all the new bank fee's, non-refundable economy class airline ticket, and stock market scams. Blame Osama all you want, but the real reason this economy is in the toilet is all the dumb a** MBA's in corporate America.

10-28-2002, 08:42 PM	#4
Westjetter Registered User Join Date: Mar 2002 Age: 27 Posts: 2,650	I think its horrible to have that much money paid out when you are laying off employees! Wasnt there a CEO (Delta Maybe) who forfited and entire years pay after sept 11?

10-29-2002, 10:11 AM	#5
AASuper80 Collector Join Date: Apr 2002 Location: Fort Worth, Texas Age: 33 Posts: 147	It was Don Carty the AA CEO that gave up his remaining salary and I also believe the AA board of director followed suit.

10-29-2002, 11:37 PM	#9
Sentinel Chicken Go-Getters Go Ozark Join Date: Jan 2001 Location: DFW/THE GREAT STATE OF TEXAS Posts: 4,167	Crandall's old nickname was "Fang"- when he came to the helm at AMR/American, somewhere during his tenure he went to a cosmetic dentist I think here in Dallas and got his canines filed down. There are a lot of AA employees I hear from that would take him over Carty anyday. Uncle Don's days are numbered at American- whether it's Crandall that makes the play to take his office back or not is up to a lot of speculation these days. One thing's for sure about Crandall- the man was a fcking genius in the industry but a real sociopathic ashole. I, too, have heard the stories on the grapevine about TWA employees filing suit. I can't say that I blame them. What message does it send when a TWA FA with 27 years is laid off while some AA FA with only 2 years stays nice and smug? The sad fact of the matter is that with the current cutbacks and layoffs at American, it's the TWA employees who are taking in square in the nuts. Look for a big shake ups at American starting in January. __________________ *Piss on noise abatement!*

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