United Airlines Linking Pay of Executives to Satisfaction of Customers

American Airlines' employee suspended after row with passengers

United Airlines said Friday it no longer plans to name chief executive Oscar Munoz chairman as it revised its compensation program following an uproar over its treatment of a passenger.

Most of Munoz's compensation was in stock. The company said in a regulatory filing that about $6.8 million United States of the total was related to a signing bonus that Munoz was promised in 2016.

David Dao, a Kentucky doctor, was dragged from his seat after refusing to give it up when United staff told him he was being bumped from the sold-out flight to make room for staff members that needed to travel.

Munoz's decision comes a day after United and the Chicago Department of Aviation missed a U.S. Senate deadline to respond to lawmakers about the events aboard flight 3411 on April 9.

United said Munoz initiated the change to his contract that granted him the chairmanship in 2018.

Demetrio has said Dao lost two teeth and suffered a broken nose and "significant concussion" during the ordeal.

The carrier also revealed it would link executive bonuses in part to demonstrable progress towards improvements in customer experience.

The lawyer for a man who was violently dragged off a United Airlines flight is now representing the mother involved in a separate incident on American Airlines over the weekend. "The board also believes that an independent chairman of the board can effectively manage the relationship between the board and the chief executive officer", the company said in the filing.

Munoz, a former railroad executive who took over United in 2015, had already been pressured by activist investors to improve the airline's performance, including in customer relations.

The CEO's initial reaction had drawn worldwide scorn when he called the incident "upsetting" and apologised for having to "re-accommodate" passengers who were asked to leave the plane.

In his first statement, Mr. Munoz claimed that Dr. Dao was being belligerent and disruptive due to which he had to be removed with force.

He finally went on ABC's Good Morning America with a more contrite message and promised a full review of United's policies regarding oversold flights.



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