Ual Chairman Gets 9.6 Million Salary

[frank rizzo]

UNITED JUST CAME OUT WITH THE FINANCIAL RECORDS OF THERE CHAIRMAN OF 9.65 MILLION A YEAR SALARY NOT INCLUDING OTHER BENNIES.I CANT FIGURE YOU GUYS AT UNITED YOUR UNION IS REALLY TAKING CARE OF YOU GUYS WHILE THIS GUY GLEN TILTON IS RUNNING TO THE BANK AND ALSO HAS A FIVE STAR PENTHOUSE AT THE FOUR SEASON IN CHICAGO PAID BY UNITED GOING FOR TWENTY GRAND A MONTH. WHILE ALL OF YOU ARE BENDING OVER AND TAKING IT WITH NO KY JELLY. THIS CORPORATE GREED HAS GOT TO STOP.

 

[2000flyer]

Apparently, according to todays news, the Senate is taking a long HARD look at these bonuses as well. They say, and rightly so in my opinion, why should the US government give money to an ailing airline when they can afford to give out huge bonuses and perks to their CEOs and other top dogs. HERE HERE!!! Finally, some politico asking the RIGHT question.

Of course, the airlines scream they HAVE to pay these people huge bonuses to "keep up with industry standards". Oh really! I'm sure when the pilot's and other labor groups sit down to talk wages, the first thing the CEO and shareholders say is "Keep them pilot's up with industry standards!" Give me a break!

And, at $9.65M a year plus options (worth what...$2M-10M), how many furloughed and laid off employees could return to work to help feed and support their families.

Sorry, I'll jump off the soap box now.

2000Flyer

 

[earlthesquirrel]

I think over 9 million is really a bit low on the pay scale. If he can bring United back to profitability his job would be almost priceless.

I read in the paper today that the average United pilot makes $130,00 per year, as quoted from ALPA. So I guess they could bring back 100 or so pilots, get a crappy CEO and then end up going out of business for good. Wow what a great idea.

Here is an honest question. How much should United pay a CEO? Pleas let me know, I am curious what your answer is.

 

[2000flyer]

Here is an honest question. How much should United pay a CEO? Pleas let me know, I am curious what your answer is.

This guy may be worth $100M a year in base salary. He may be the saving grace for the airline. But, as a leader, what message is he sending rank and file? I'll tell you what it says:

"Listen folks, yes, I just raked in $9.65M this year. I'm really sorry that several thousand of you fine people had to be furloughed or layed off in the mean time, but really gang, I'm worth every penny. Actually, according to 'industry standards' (those set in the mid-90s) I'm actually worth a lot more! Oh, by the way, you've read in the news that we might never be the size or force that we once were, but I promise you this; I will continue accepting my salary, bonuses and restricted stock options in order to make sure that a fraction of you might get your job back if we survive all of this. One last message to the currently employed rank and file, we need another 5% of your pay in order to avoid bankruptcy this month. I'm sure you will all agree with this move. It's 5:00 PM and my Beemer is warming up and dinner getting cold. Good day to all. Oh, thanks too."

All sarcasm aside, if this guy were worth his salt he'd sacrifice like other fellow employees, for the good of the company. Give him the stock options. Tell him in five years, if and when the company is once again healthy and profitable, then and only then will we as shareholders consider any sort of bonus and other perks.

We've heard it time and time again over the last few years. The top officials at failing companies cashing in before the door slams shut. Honestly, it's pathetic.

2000Flyer

 

[Dep676]

I think over 9 million is really a bit low on the pay scale. If he can bring United back to profitability his job would be almost priceless.

I read in the paper today that the average United pilot makes $130,00 per year, as quoted from ALPA. So I guess they could bring back 100 or so pilots, get a crappy CEO and then end up going out of business for good. Wow what a great idea.

Here is an honest question. How much should United pay a CEO? Pleas let me know, I am curious what your answer is.

Yeah maybe 9.6 million would be good after he gets the company on it's feet again. Give him a million a year if that until then. Mean while his salary is taking the company down. So after he tanks the company he will be laughing all the way to the bank. Next he willbe asking the government to bail them out. While he is making 9.6 mil a year. That makes perfect sense, NOT!!!!!!!

 

[earlthesquirrel]

United lost a little over 900 mil last quarter. I doubt his salary is bringing United down.

Still nobody has answered what his salary should be. Ben and Jerry's ice cream originally had a plan that the highest paid person in their company would never make more than 5 times that of the lowest. Well that failed miserably and it almost took them into bankruptcy. You get what you pay for. I hope he brings United out of bankruptcy and he is worth his salary.

 

[2000flyer]

earl...

I hope he brings United out of bankruptcy and he is worth his salary.

I doubt anyone out here would disagree with your statement. No one wants to see UAL or any other airline fail.

I can't answer your question as to what he should be paid. I don't have the first clue. But let me ask you this:

You, earlthesquirrel, are a proven business leader. You have a string of successes under your belt. UAL calls on you to become their CEO knowing full well you have the talent and tools to turn a bleeding company around and back to profitability.

You know you can do the job. There is no doubt in your mind. So, do you accept their $9.6M a year salary, or do you tell the shareholders "I will do it for $1M a year, no bonus, no golden parachute, no stock options until my team and I turn this company around to the success of the past. Then, AND ONLY THEN, will I accept a more lucrative compensation package when we've brought back as many furloughed or layed off employees as possible."

Would you do that or would you say "I'm worth $9.6M and by God I'm going to get it and more or you can find someone else to do the job?"

Listen Earl, I'm just a working stiff like most others on this board. I don't subscribe to class envy like some do. But, to me, this guy is telling the entire company, "Hey, I'm worth every penny I'm getting, however, you folks working in the trenches need to give up 30% or more of your income or we'll surely fail."

True, his salary is a pitance when compared to the total losses over the last few years. But he isn't advocating a 30% reduction in his earnings from what I've seen. A true leader leads by example. I'm sure people wouldn't be as upset if it looked like he was having to sacrifice like everyone else!

2000Flyer

 

[tarp]

I am not a fan of overblown executive compensation but I know what the moral justification is.

Being in the DC area, it's the same thing that drove Dan Snyder (owner of Redskins) to hire Steve Spurrier at some outrageous price.

Abe Pollin (owner of Washington Wizards) basically gave a quarter of the team to Michael Jordan for his help in bringing fans to the MCI center (all under the table, but wait till you see Michael's bottom line next year).

Likewise in corporate history, Viacom spent a fortune to get Sumner Redstone from Sunbeam - why? He basically took a bankrupt appliance company and brought it roaring back to life yielding an axe to compensation, number of US workers and retirement plans.

Chrysler wooed Lee Iococca from Ford. Was it worth it to have a spokesman who basically got the federal government to bail out the company? Was he worth the salary? Chrysler's stock holders sure think so (my mutual fund made a killing on Chrysler stock and basically solidified my retirement).

Everybody has dreams of the "superstar" who will save the day. Every CEO of multi-billion corporations compare themselves to Eisner (Disney), Gates (Microsoft), Welch (GE), Huizanga, Iacocca, Icahn, Trump and even Lorenzo.

I think the CEO should "earn" his wage just like all the other workers in the company, but no one can blame any "rain maker" who is going to take a bankrupt company and try to turn it around. He's taking a chance. Life would have been a lot simpler running a cash cow like Chevron/Texaco Petroleum than coming to a near bankrupt airline. Now the only question is he the superstar United is looking for or is he just going to take the money and run???

 

[Publishers]

Lost

What is being lost is that he was getting this kind of money where he was and UAL showed up and wanted him.

Why should he have left and agreed to less than he was happily making where he was?

If you want to be after someone, get after the board who recruited him.

 

[earlthesquirrel]

Didn't up until about a week ago the employees of United had 2 seats on United's board. How did these seats vote on the hiring
of Mr. Tilton? Was it a thumbs up or down?

 

[Talon07]

Leadership is the key here. The guy obviously doesn't need the money, but a lot of his employees do. He shouldn't take a cent until the company returns to profitability, then he should take a percentage. This would show true commitment to the company. Instead, he and most of the other CEOs, are showing commitment only to themselves.
On the arguement that "the top managers deserve top salaries", I used to say a similar thing about Wolf and Gangwall when the merger was in the works. They ended up screwing the company and walking away with millions. At the same time, they were putting people out on the street.
If these CEOs can run the company in a way that guarantees good jobs for the employees, then they do deserve top salaries, but when the company is failing, there is no excuse for them to be rewarded.

 

[Dep676]

Leadership is the key here. The guy obviously doesn't need the money, but a lot of his employees do. He shouldn't take a cent until the company returns to profitability, then he should take a percentage. This would show true commitment to the company. Instead, he and most of the other CEOs, are showing commitment only to themselves.
On the arguement that "the top managers deserve top salaries", I used to say a similar thing about Wolf and Gangwall when the merger was in the works. They ended up screwing the company and walking away with millions. At the same time, they were putting people out on the street.
If these CEOs can run the company in a way that guarantees good jobs for the employees, then they do deserve top salaries, but when the company is failing, there is no excuse for them to be rewarded.

Well said. To take 9.6 million a year then ask the employees to take a pay cut is wrong. Good leadership leads by example. Come aboard and don't take the big salary until "he" turns the company around and only if and when "he" turns it around. If he is so confident he can turn things around. He would have no problem taking a little salary until then. If he has been making 9.6 million a year in his previous job. He should a nest egg that he can live on until things turn around.

Like the taking 30% from the employees is going to help. When he is making 9.6 million a year doesn't help anything except his bank account.

 

[Publishers]

see

Somehow I do not see any of you guys saying -- I will leave this nice situation that I have here in Texas where me and my family can live a nice comfortable existance.to take on trying to bring United back from the debts of despair.

\And I will do this for nothing unless I pull it off. I will use my own nest egg until then.

Right