United CEO takes another cut in pay
CHICAGO (AP)
UAL Corp. CEO Glenn F. Tilton will be taking another salary cut due to bankrupt United Airlines' continued financial woes, the company announced Friday. In December, Tilton reduced his and the annual salaries of 36 other executive officers by 11%.
The action was taken at a time when the airline announced the layoff of about 350 pilots and other cost cutting measures.
The airline said Tilton's salary will be reduced by an additional 14%, effective April 1. The net effect is a 25% reduction in his annual salary, or a reduction of $237,500, to $712,500.
"Given the new financial challenges to United and this industry created by the current external environment, I believe this is an appropriate step," said Tilton, who became chairman and president of UAL in September 2002. Tilton noted that everyone at United is contributing significantly and proportionately to the airline's financial recovery, and additional sacrifice may become necessary.
United's more than 8,000 pilots will vote next month on whether to ratify an agreement slashing their pay by 30% and making further cuts through changed work rules. Elk Grove Village-based United has set a May 1 deadline for voiding labor contracts in bankruptcy court if agreements aren't reached with its unions, including the machinists and the flight attendants union.