United Continental Details Executive Pay - TheStreet
United Continental Details Executive Pay
By TheStreet Staff 10/03/10 - 03:15 PM EDT1 CommentAdd Comment
Stock quotes in this article:UAL
CHICAGO (TheStreet) -- United Continental Holdings(UAL_) has disclosed compensation packages for its top executives and chairman.
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United Continental is the result of Friday's merger of United Airlines' parent UAL Corp. (former ticker UAUA) and Continental Airlines (former ticker CAL). It is the world's largest airline when measured by traffic.
In a filing with the Securities and Exchange Commission Friday, the airline said its president and CEO, Jeffrey Smisek, would receive an annual salary of $975,000 and will be eligible to receive another $1.46 million a year under the company's annual cash incentive program.
Smisek's contract also provides for a grant in 2011 of a long-term incentive award with a target value of $8.4 million, as well as a one-time merger integration award with a target value of $4 million.
Before the merger, Smisek was the chairman and CEO of Continental. His initial contract with United Continental Holdings is for three years.
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Zane Rowe, UAL's new CFO (and former Continental CFO), will receive an annual base salary of $750,000, and he'll be eligible for incentive compensation of 135% of his salary, or $1.01 million.
McDonald, the merged airline's COO, will bring home $850,000 a year and, like Rowe, will be eligible for incentive compensation of 135% of his salary, or $1.15 million. McDonald was chief administrative officer at United Airlines.
Upon completion of the merger, Glen Tilton retired as president and CEO of UAL Corp. He becomes nonexecutive chairman of the merged airline, however.
The regulatory filing said Tilton, in his new role, will receive "enhanced payments and benefits in recognition of the unique contributions he is expected to make and the heightened responsibilities he is expected to have in the role of chairman of UAL in light of his prior roles leading UAL."
Tilton will receive a $600,000 annual cash retainer and an annual equity grant of $150,000 in restricted stock units.
In addition, Tilton will be entitled to office space and administrative support during his service as chairman and for a period of 10 years thereafter.