UAL Execs Paid Big Bonuses
03-17-2005, 10:03 AM
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UAL Execs Paid Big Bonuses
Rocky Mountain News
UAL pays top executives $1.3 million in bonuses
By Chris Walsh And David Milstead, Rocky Mountain News
March 17, 2005
United Airlines paid $1.3 million in bonuses to its top five executives last year even as the bankrupt carrier continued to slash employee pay and benefits.
All but one of the five executives also took home more money in salary than the previous year.
The company's top executive - CEO Glenn Tilton - landed bonuses totaling $366,393, on top of $756,832 in salary, according to documents filed Wednesday with the Securities and Exchange Commission. In 2003, Tilton didn't receive a bonus and brought home $745,749 in salary.
The largest bonus went to John Tague, the airline's executive vice president of marketing, sales and revenue, who received $444,969 in addition to $541,330 in salary. In 2003, Tague didn't receive a bonus and brought home $335,531 in salary.
United - a unit of Chicago-based UAL Corp. and the largest carrier in Denver - didn't give 2003 bonuses to some executives and said it still is deciding whether or not it will.
Last year's payments came from United's "success-sharing program," which awards bonuses to all employees if the company meets certain quarterly goals. Tague also received money from a "retention and recognition" plan.
The amounts pale in comparison with executive compensation at most companies United's size. But most companies United's size are not struggling through bankruptcy, attempting to survive by cutting worker wages. The airline filed for bankruptcy in 2002 and is trying to slash $1.3 billion annually in labor, benefit and pension expenses to emerge from bankruptcy this year.
"These executives are just unbelievable," said Richard Turk, of the San Francisco Bay Area branch of the Aircraft Mechanics Fraternal Association. "They talk about how the airline has to save money and cut employee retirement benefits and then they give themselves big bonuses and pay increases."
United workers complain that executive bonus levels are much higher than the 5 percent that rank-and-file employees can receive. Tilton's bonus last year, for example, amounted to nearly 50 percent of his salary.
United said that its unions previously agreed to implement the success-sharing program and that giving executives a higher percentage means they have more money at risk if the airline doesn't meet its goals.
The carrier also pointed out that Tilton has cut his own pay since arriving in 2002 with a $950,000 salary. After taking a 15 percent cut Jan. 1, Tilton will make $605,625 this year.
United bonuses
• Glenn Tilton, chairman, president, chief executive officer; salary $756,832, bonus $366,393
• Douglas A. Hacker, executive VP of strategy; salary $582,000, bonus $150,413
• Frederic F. Brace, executive VP and chief financial officer; salary $514,000, bonus $173,403
• Peter D. McDonald, executive VP and chief operating officer; salary $525,998, bonus $177,602
• John Tague, executive VP of marketing, sales and revenue; salary $541,330, bonus $444,969
Copyright 2005, Rocky Mountain News. All Rights Reserved.
UAL pays top executives $1.3 million in bonuses
By Chris Walsh And David Milstead, Rocky Mountain News
March 17, 2005
United Airlines paid $1.3 million in bonuses to its top five executives last year even as the bankrupt carrier continued to slash employee pay and benefits.
All but one of the five executives also took home more money in salary than the previous year.
The company's top executive - CEO Glenn Tilton - landed bonuses totaling $366,393, on top of $756,832 in salary, according to documents filed Wednesday with the Securities and Exchange Commission. In 2003, Tilton didn't receive a bonus and brought home $745,749 in salary.
The largest bonus went to John Tague, the airline's executive vice president of marketing, sales and revenue, who received $444,969 in addition to $541,330 in salary. In 2003, Tague didn't receive a bonus and brought home $335,531 in salary.
United - a unit of Chicago-based UAL Corp. and the largest carrier in Denver - didn't give 2003 bonuses to some executives and said it still is deciding whether or not it will.
Last year's payments came from United's "success-sharing program," which awards bonuses to all employees if the company meets certain quarterly goals. Tague also received money from a "retention and recognition" plan.
The amounts pale in comparison with executive compensation at most companies United's size. But most companies United's size are not struggling through bankruptcy, attempting to survive by cutting worker wages. The airline filed for bankruptcy in 2002 and is trying to slash $1.3 billion annually in labor, benefit and pension expenses to emerge from bankruptcy this year.
"These executives are just unbelievable," said Richard Turk, of the San Francisco Bay Area branch of the Aircraft Mechanics Fraternal Association. "They talk about how the airline has to save money and cut employee retirement benefits and then they give themselves big bonuses and pay increases."
United workers complain that executive bonus levels are much higher than the 5 percent that rank-and-file employees can receive. Tilton's bonus last year, for example, amounted to nearly 50 percent of his salary.
United said that its unions previously agreed to implement the success-sharing program and that giving executives a higher percentage means they have more money at risk if the airline doesn't meet its goals.
The carrier also pointed out that Tilton has cut his own pay since arriving in 2002 with a $950,000 salary. After taking a 15 percent cut Jan. 1, Tilton will make $605,625 this year.
United bonuses
• Glenn Tilton, chairman, president, chief executive officer; salary $756,832, bonus $366,393
• Douglas A. Hacker, executive VP of strategy; salary $582,000, bonus $150,413
• Frederic F. Brace, executive VP and chief financial officer; salary $514,000, bonus $173,403
• Peter D. McDonald, executive VP and chief operating officer; salary $525,998, bonus $177,602
• John Tague, executive VP of marketing, sales and revenue; salary $541,330, bonus $444,969
Copyright 2005, Rocky Mountain News. All Rights Reserved.
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