UAL may pay CEO $15 million

[David Farber <dave () farber net>]

UAL may pay CEO $15 million


Bloomberg News
UAL Corp., the parent of United Airlines, is considering paying Chief  
Executive Glenn Tilton $15 million in stock after the carrier exits  
bankruptcy, according to a consultant's review of the proposal  
obtained by Bloomberg News. The company's top eight executives would  
receive -- over a four-year period -- restricted stock and options  
valued at $24 million, giving them a 3.3 percent stake.

"The members find it gross and disgusting that United executives are  
going to benefit from the workers' sacrifices," said Joe Tiberi, a  
spokesman for the International Association of Machinists, which  
represents baggage handlers and customer service agents at the carrier.

"This seems reasonable in comparison to what has been done in other  
large public company cases," said Lynn LoPucki, a UCLA law professor  
who specializes in bankruptcy law.

Next week, a court is to consider the company's bid to exit from  
Chapter 11 as early as February.


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