Houston Chronicle

CEO won’t be promoted to airline chairman

United board wants Munoz to focus on improving ‘customer experience’

- By Barry Meier

The promotion of the chief executive of United Airlines, Oscar Munoz, became a casualty of the public relations crisis gripping the air carrier, as the company that runs the airline said Friday that he would not ascend as planned to the role of chairman.

The company, United Continenta­l Holdings, is also adjusting its incentive compensati­on program for senior executives to make it “directly and meaningful­ly tied to progress in improving the customer experience.”

The moves follow a public relations catastroph­e that began almost two weeks ago, when a passenger was violently dragged off a United Express flight by an airport police officer before its departure from Chicago to make room for a company employee. The episode was captured by other passengers on cellphones and quickly spread on social media.

Initially, Munoz appeared to blame the passenger, Dr. David Dao, for causing the incident. But amid a backlash, Munoz changed course and said he felt “shame” over how the situation was handled.

United has offered a refund to every passenger on the flight and has promised to no longer have police remove passengers from planes that are too full. But those gestures and Munoz’s apologies have done little to quell the anger.

In addition, lawmakers have demanded more details about how and why the incident took place.

In a proxy filing Friday, United Continenta­l said Munoz had voluntaril­y agreed to drop a clause in his employment contract under which he would ascend to the role of company chairman next year.

He also agreed to the eliminatio­n of another contract clause that would have allowed him to resign his post as chief executive if he was not also given the role of chairman, according to the filing.

The company’s board of directors will now determine its new chairman.

“Having an independen­t chairman of the board is a means to ensure that Mr. Munoz is able to more exclusivel­y focus on his role as chief executive officer,” the company said.

Munoz joined United as its president and chief executive in September 2015.

A month after his appointmen­t, however, Munoz had a heart attack and ultimately underwent a heart transplant.

He did not return to work until March of last year.

Newspapers in English

Newspapers from United States