Ex- United CEO gets $ 37 million
Jeff Smisek’s severance package includes a car, free f lights and lifetime parking privileges at two major airports.
Despite resigning amid a federal corruption investigation, the former chief executive of United Airlines is receiving nearly $ 37 million in compensation, including a car, free f lights and lifetime parking privileges at two major airports.
The payouts to former United Continental Holdings Inc. CEO Jeff Smisek were described in a filing by the airline to the Securities and Exchange Commission last week.
Smisek is receiving a lump cash payment of nearly $ 5 million, which includes payments for unused vacation days. The rest of his “separation agreement” includes bonuses for meeting company performance goals, plus healthcare and life insurance payments.
Smisek also receives “f light benefits,” valued at about $ 82,000, plus lifetime parking at United Airlines hubs in Houston and Chicago. He can also keep his company car, valued at $ 58,700, the filing said.
Smisek and two other United employees stepped down in September in the face of a federal investigation into allegations that the airline was trading favors with the head of the Port Authority of New York and New Jersey
United was accused of operating a money- losing f light to the airport nearest the weekend home of the port authority’s chairman in exchange for improvements the carrier wanted at Newark Liberty International Airport. Oscar Munoz replaced Smisek as CEO. A United Airlines spokesperson could not be reached to comment on the filing.
In other SEC filings, Southwest Airlines Co. reported that its chief executive, Gary Kelly, received compensation of $ 5.9 million in 2015, while American Airlines Group Inc. reported that Chairman and CEO Douglas Parker was paid $ 11.4 million in 2015.