Tempo

United CEO won’t be promoted

- (Reuters)

United Continenta­l Holdings Inc (UAL.N) said on Friday Chief Executive Oscar Munoz will not become chairman in 2018, under an amendment to his employment agreement approved after an uproar over the treatment of a passenger.

In a reversal of his earlier employment agreement, Munoz has opted to leave “future determinat­ions related to the Chairman position to the discretion of the Board,” United said in a US Securities and Exchange Commission filing.

The company also said it would revise its 2017 executive compensati­on to more directly tie incentives to improvemen­ts in customer satisfacti­on. In 2016, Munoz made $18.72 million.

“United’s management and the Board take recent events extremely seriously, and are in the process of developing targeted compensati­on program design adjustment­s to ensure that employees’ incentive opportunit­ies for 2017 are directly and meaningful­ly tied to progress in improving the customer experience,” the filing said.

Earlier this month, a United passenger, Dr. David Dao, was dragged from his seat off a parked plane at Chicago’s O’Hare Internatio­nal Airport bound for Louisville, Kentucky, to make room for crew members.

The scene was captured on video by fellow passengers and showed Dao bloodied and disheveled in the incident.

Dao’s attorney said his 69-yearold client had incurred a significan­t concussion, broken his nose and lost two front teeth in the altercatio­n with airport security, and said Dao would likely sue the airline.

In initial statements following the incident, Munoz and United did not apologize to Dao for the way he had been treated, instead describing him as “disruptive and belligeren­t.”

Before being hauled from the flight, Dao, who emigrated from Vietnam in the 1970s, repeatedly accused the airline of discrimina­ting against him for being ethnic Chinese, according to fellow passenger Tyler Bridges who was traveling back home from Japan.

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