Dow Jones Business News
United Airlines Plans to Reduce Company Officers by 18%
Tuesday December 3, 8:08 pm ET
Dow Jones Newswires
CHICAGO -- United Airlines will reduce the number of company officers by 18% in a further effort to cut costs.
The company added Tuesday that the 36 remaining company officers will have annual compensation cut 11% over five-and-a-half years.
United Airlines, a unit of UAL Corp. (NYSE:UAL - News) , said total savings, including the reduction in the number of officers, is more than $60 million.
United said that in addition to salary cuts, the officers have forgone their planned 2002 merit salary increase and a 2002 incentive payment.
The salary reductions will become effective upon the closing of a loan facility for the company, guaranteed in part by the Air Transportation Stabilization Board.
UAL has said it may seek bankruptcy protection if it fails to obtain the federal loan guarantee.
The five most highly compensated UAL executives were paid an average of $1.9 million in 2001, excluding the value of stock options.
UAL Chairman John W. Creighton, received no salary in the period, but was provided with options on 400,000 UAL shares.
Earlier Tuesday, the company said it will furlough 352 pilots in January and February as part of a plan to reduce capacity in 2003.
-John Seward; Dow Jones Newswires; 201-938-5400
United Airlines Plans to Reduce Company Officers by 18%
Tuesday December 3, 8:08 pm ET
Dow Jones Newswires
CHICAGO -- United Airlines will reduce the number of company officers by 18% in a further effort to cut costs.
The company added Tuesday that the 36 remaining company officers will have annual compensation cut 11% over five-and-a-half years.
United Airlines, a unit of UAL Corp. (NYSE:UAL - News) , said total savings, including the reduction in the number of officers, is more than $60 million.
United said that in addition to salary cuts, the officers have forgone their planned 2002 merit salary increase and a 2002 incentive payment.
The salary reductions will become effective upon the closing of a loan facility for the company, guaranteed in part by the Air Transportation Stabilization Board.
UAL has said it may seek bankruptcy protection if it fails to obtain the federal loan guarantee.
The five most highly compensated UAL executives were paid an average of $1.9 million in 2001, excluding the value of stock options.
UAL Chairman John W. Creighton, received no salary in the period, but was provided with options on 400,000 UAL shares.
Earlier Tuesday, the company said it will furlough 352 pilots in January and February as part of a plan to reduce capacity in 2003.
-John Seward; Dow Jones Newswires; 201-938-5400
