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Tilton's 2009 Compensation

UALRATT

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"Chicago-based UAL said its directors considered the executive's performance in making the long-term incentive awards, but did not follow a formula".

http://finance.yahoo.com/news/UALs-Tilton-saw-pay-double-to-apf-3512769130.html?x=0&.v=3

United Airlines chairman and CEO Glenn Tilton saw his compensation more than double last year, to almost $3.9 million, according to an Associated Press analysis of pay figures filed on Tuesday.
The big increase was because of a new long-term incentive program that handed Tilton options and restricted stock valued at the time at $2.8 million.
His base pay stayed unchanged at $850,000. It was set in March 2009, and the board left it unchanged because of factors including "individual performance, the company's overall performance, general industry conditions," and the practices of other companies.
Tilton as well as United's salaried and management workers received no short-term incentive pay in 2009 because the company didn't meet financial goals.
Things have been looking up since then, though.
In April 2009 the company adopted a new long-term incentive program. That's when Tilton was awarded the options and restricted stock. The exercise price on those options was $4.86 per share.
Shares of United parent UAL Corp. have zoomed upward since then, closing on Tuesday at $21.78 as United has gotten through the worst of its financial troubles and on reports of merger talks involving it and Continental Airlines Inc. or US Airways Group Inc.
Chicago-based UAL said its directors considered the executive's performance in making the long-term incentive awards, but did not follow a formula.
The first 66,667 of those stock options vested this month, and Tilton exercised them and sold the shares for $23 each on Thursday, the company said in a separate filing. That would have given him a profit of $1.2 million based on the difference between the exercise price and the price he sold them for.
The sale was part of a prearranged 10b5-1 trading plan. Such plans allow a company insider to set up a program in advance for such trades, and proceed with them even if he or she comes into possession of significant nonpublic information. The company declined to provide a copy of the plan on Tuesday.
Tilton has run United since 2002. He has long said that United, and the airline industry in general, would benefit from airline mergers. United is the nation's third-largest airline by traffic.
Other compensation for Tilton, 62, included $35,367 for personal use of the company car and $34,000 for financial planning.
The AP formula is designed to isolate the value the company's board placed on the executives' total compensation package during the last fiscal year. It includes salary, bonus, performance-related bonuses, perks, above-market returns on deferred compensation (which Tilton did not receive) and the estimated value of stock options and awards granted during the year.
The calculations don't include changes in the present value of pension benefits, making the AP total different in most cases than the total reported by companies to the Securities and Exchange Commission.
UAL's proxy did not set the date or location of its annual meeting.
 
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