Tilton to stay on 4 more years
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LGA Fleet Service
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40% raise and $3.4 million in stock options a year, good to see the CEO leading by example and not bellying up to the trough. 🙄
Rocky Mountain News
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dc3fanatic
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pay for performance sucks.
dc3fanatic
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What the hell is the board thinking??!?? I mean, come on! Why would you incentivise a CEO to make the stock price perform. I mean, who really benefits from that? Just the stupid shareholders!! What could the board be thinking? If the board was really fair, they'd just give him a contract similar to a union contract based on his seniority. Pay for performance? Aww hell, if the stock goes up 30% maybe they could give him free lunches in the cafeteria on Fridays.
Heavens, what could those board members be thinking?
JungleClone
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It shouldn't be that surprising that the BOD renewed Tilton's contract. Firstly, does it make sense to change CEO's when you're actively looking to merge with/acquire another airline? Not exactly a sign of stability to whomever you might be trying to marry.
Also, in the post-Enron world, most Boards of Directors have been shown to be extremely flawed. CEO's change directors and appoint their own guys. In turn, those guys become loyal to the CEO. So the BOD tends to lose its' objectivity and effectiveness. So it shouldn't be a surprise at all that Tilton is being rewarded with a new contract. But make no mistake. If UA merges with another carrier, Tilton and his team will be out the door.
Also, in the post-Enron world, most Boards of Directors have been shown to be extremely flawed. CEO's change directors and appoint their own guys. In turn, those guys become loyal to the CEO. So the BOD tends to lose its' objectivity and effectiveness. So it shouldn't be a surprise at all that Tilton is being rewarded with a new contract. But make no mistake. If UA merges with another carrier, Tilton and his team will be out the door.
dc3fanatic
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Really? You think Tilton will be shown the door directly after a merger? AND you think that UA will be the aquired company?
I completely disagree that Tilton will be shown the door after a merger AND the only caveat to that would be if the merger were international. ie, Lufthansa
What makes you think he would be shown the door?
I agree with Jungle, Tilton would be gone after any merger. He's had a terrible track record, there's more to running a company than going out and hacking everyone off at the knees and then saying, Look how I've turned this company around. There has to be some happy medium when it comes to the front line employees, because they can make or break the airline. The jury's still out.
Also you were the one who said UA would be aquired. No where does Jungleclone say anything about UA being aquired by another carrier in his post.
dc3fanatic
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I stand corrected on that point. He didn't say it, and I don't think they will be acquired. If anything, they will do the acquiring.
JungleClone
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dc3fanatic,
It's not so much that I think Tilton would be shown the door, it's more because I don't think he WANTS to run an airline for the long haul. He was brought in to do a job. That job was to restructure UA via bankruptcy. He did, that. But in my view, he shouldn't be showered with praise for his efforts. He and his minions effectively plucked the low-hanging obvious fruit during bankruptcy. We've yet to see any real, innovative, forward-thinking leadership at UA. It's still a company largely defined by a horrible culture. Tilton hasn't really done much of anything to change that. Sure, he's shuffled and turned over nearly all of the company officers, but that's merely window-dressing. A true leader would have FORCED change from the top-down upon the company and then held everyone accountable to that change. That hasn't happened nearly enough at United. Accountability is not something Tilton or his senior officers are going to be remembered for. If accountability were important at United, Jake Brace would have been sh-tcanned a long time ago.
But back to my point. When (and we all know it's only a matter of when) UA acquires another airline or is acquired by another airline, he won't stick around. Most of the banks and investment houses that throw their money at a merger are looking for the quick buck. But those that have a vested long-term interest in the fortunes of the combined carrier need to ensure that the leadership team can get it done. I honestly do not think Tilton is that guy. He's a restructuring guy. He's not forward-thinking enough to run a major airline. Maybe that's largely due to surrounding himself with plenty of old-school airline "yes" men (which would be another one of his faults as CEO.....picking poor officers).
So, while Tilton might stick around for the short-term of any deal involving United, I don't thinke he WANTS to run it for the long haul. He's getting up there in age. I believe he'd rather cash out and spend his retirement counting his millions.
It's not so much that I think Tilton would be shown the door, it's more because I don't think he WANTS to run an airline for the long haul. He was brought in to do a job. That job was to restructure UA via bankruptcy. He did, that. But in my view, he shouldn't be showered with praise for his efforts. He and his minions effectively plucked the low-hanging obvious fruit during bankruptcy. We've yet to see any real, innovative, forward-thinking leadership at UA. It's still a company largely defined by a horrible culture. Tilton hasn't really done much of anything to change that. Sure, he's shuffled and turned over nearly all of the company officers, but that's merely window-dressing. A true leader would have FORCED change from the top-down upon the company and then held everyone accountable to that change. That hasn't happened nearly enough at United. Accountability is not something Tilton or his senior officers are going to be remembered for. If accountability were important at United, Jake Brace would have been sh-tcanned a long time ago.
But back to my point. When (and we all know it's only a matter of when) UA acquires another airline or is acquired by another airline, he won't stick around. Most of the banks and investment houses that throw their money at a merger are looking for the quick buck. But those that have a vested long-term interest in the fortunes of the combined carrier need to ensure that the leadership team can get it done. I honestly do not think Tilton is that guy. He's a restructuring guy. He's not forward-thinking enough to run a major airline. Maybe that's largely due to surrounding himself with plenty of old-school airline "yes" men (which would be another one of his faults as CEO.....picking poor officers).
So, while Tilton might stick around for the short-term of any deal involving United, I don't thinke he WANTS to run it for the long haul. He's getting up there in age. I believe he'd rather cash out and spend his retirement counting his millions.
dc3fanatic
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The only quick response I have to this is the following: I thought Tilton already had millions before working at UA.
He may not WANT to run it, but I doubt he will be shown the door.
What kind of change did you expect to see that you haven't seen?
JungleClone
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Hmmmmmmmm, I don't know, how about true innovative changes to the way United is run as a company? How about encouraging out-of-the-box thinking amongst it's workforce? Where is the culture change Tilton promised?
A TRUE leader has the ability to recognize problems within an organization and force change to achieve desired results. All Tilton has done is shake the executive tree and watch all the VP monkeys land on a different branch. UA is still riddled with ineffective and morale-stifling middle management in all areas of the company. It's no open secret that these managers are ineffective. Yet they remain. What does that do for morale and retention? UA still has a severely draconian way of doing business and doesn't seem the least bit interested in changing it. In fact, Tilton and the other clowns running UA seem more interested in distancing themselves further from the workforce, as evidenced by their upcoming move to downtown Chicago. That sends a nice message to the troops, doesn't it?
As for your question about Tilton already having millions, so what? Do you think he's the first multi-millionaire executive to move heaven and earth to fatten his net worth a bit more? Make no mistake about it, Glenn Tilton has no intention of running United Airlines for the long haul. He is hoping to merely hold down the fort long enough for another carrier to enter into M & A activity with UA, so he can cash in and ride off into the sunset.
If he were intent on running UA for the long haul, than I'd be more afraid for UA's future than I already am.
A TRUE leader has the ability to recognize problems within an organization and force change to achieve desired results. All Tilton has done is shake the executive tree and watch all the VP monkeys land on a different branch. UA is still riddled with ineffective and morale-stifling middle management in all areas of the company. It's no open secret that these managers are ineffective. Yet they remain. What does that do for morale and retention? UA still has a severely draconian way of doing business and doesn't seem the least bit interested in changing it. In fact, Tilton and the other clowns running UA seem more interested in distancing themselves further from the workforce, as evidenced by their upcoming move to downtown Chicago. That sends a nice message to the troops, doesn't it?
As for your question about Tilton already having millions, so what? Do you think he's the first multi-millionaire executive to move heaven and earth to fatten his net worth a bit more? Make no mistake about it, Glenn Tilton has no intention of running United Airlines for the long haul. He is hoping to merely hold down the fort long enough for another carrier to enter into M & A activity with UA, so he can cash in and ride off into the sunset.
If he were intent on running UA for the long haul, than I'd be more afraid for UA's future than I already am.
Ummmmm.... BOB? 😛 😀
I remember hearing Tilton say once, when he first came onboard at United, that he had never seen such animosity between the laborers and management as he had at United. So what happened there Glenn?
I hope no merger would happen but I'm not that naive. I just hope I end up on the winning end of the stick (meaning DELTA....they have no unions....SENIORITY!!!)
Wow, didn't think I would hear that from you. You really don't want to echo the evil witch from the North East on the American boards.
Speaking of seniority, I'm a UA retiree with a DOH of 6/14/59 and it took two PS flights JFK-SFO to get home on Saturday.....I did make it up front, but just barely.
Somebody said that this is the good old days, but not in the airline business.
JungleClone
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It takes a REAL leader to fix cultural issues that exist across an entire company as large as UA. But it can be done. It starts at the top. If the CEO supports change and holds everyone accountable to that change, including his senior officers, than it can happen. That is largely how Bethune and Brenneman turned CO around. It didn't happen overnight. But over the course of the first several years they ran CO, the old way of doing business was clearly tossed out the window and those that weren't on board with the new way of doing things were tossed out the window with it.
But you see, Glenn doesn't have time for such things. He'd rather focus all his efforts on merging UA with another airline system, cashing in, and saying "sayonara". He hasn't the stomach nor the desire to run an airline long-term. But UA is better for it, whether they remain an independent airline (highly unlikely), or whether they acquire or are acquired by another carrier (very likely).
I wonder what Tilton's legacy will be at UA. Oh sure, he'll be remembered as the guy who ushered them through bankruptcy. He did do that. But one of my biggest beefs with Tilton is that UA spent 3 years in bankruptcy and only managed to pick the low-hanging fruit to trim costs. Their non-labor costs are still among the highest in the industry. So what was bankruptcy for, other than to drive labor costs down and expedite more outsourcing?
The best thing that could happen for UA for the long-term would be to get a management team in there who know what is needed to run an airline for the future, but aren't willing to bludgeon their employees to achieve it.
But you see, Glenn doesn't have time for such things. He'd rather focus all his efforts on merging UA with another airline system, cashing in, and saying "sayonara". He hasn't the stomach nor the desire to run an airline long-term. But UA is better for it, whether they remain an independent airline (highly unlikely), or whether they acquire or are acquired by another carrier (very likely).
I wonder what Tilton's legacy will be at UA. Oh sure, he'll be remembered as the guy who ushered them through bankruptcy. He did do that. But one of my biggest beefs with Tilton is that UA spent 3 years in bankruptcy and only managed to pick the low-hanging fruit to trim costs. Their non-labor costs are still among the highest in the industry. So what was bankruptcy for, other than to drive labor costs down and expedite more outsourcing?
The best thing that could happen for UA for the long-term would be to get a management team in there who know what is needed to run an airline for the future, but aren't willing to bludgeon their employees to achieve it.
