United Airlines CEO Glenn Tilton could receive stock and options worth $15 million, base pay of more than $600,000 and a bonus that could double his salary when the carrier emerges from Chapter 11 bankruptcy next month, company documents and court papers show.
Tilton would get 545,000 restricted shares and 822,000 options, or just more than 1 percent of the $1.9 billion in equity United intends to issue, if a bankruptcy judge approves.
Overall, United plans to set aside 8 percent of the equity it plans to issue - at a value of around $152 million - for about 400 salaried and management employees.
The proposed incentive plan for senior managers and directors of the nation's No. 2 airline will be a touchy issue as a Chicago bankruptcy court starts hearings Jan. 18. about United's plan for exiting bankruptcy.
Unions representing workers at United, a unit of Elk Grove Village, Ill.-based UAL Corp., blasted the potentially lucrative equity programs Wednesday, noting that United workers have agreed to millions of dollars of pay cuts to help restore the airline to financial health.
Charlotte.com (via AP Wire)
United to pare exec stock plan
Despite cut, unions say $75 million for top 8 is excessive
United Airlines is cutting back the size of a stock-award plan for its executives and directors but still plans to set aside shares with a potential value of $75 million for its top eight executives.
The company's unions, despite the smaller award, plan to contest the carrier's emergence from bankruptcy on the grounds the plan is excessive.
United said in a Wednesday filing with the Securities and Exchange Commission that its board approved a plan to set aside 13.75 million shares for 400 top executives and the company's directors. That's one-quarter fewer than the 18.75 million shares United originally suggested would go into its incentive plan.
Most of the stock would be issued as soon as United exits bankruptcy and would be a combination of restricted stock, which could be sold by the executives only over a four-year period, and stock options, which would provide value only if United stock rises.
Rocky Mountain News
Tilton would get 545,000 restricted shares and 822,000 options, or just more than 1 percent of the $1.9 billion in equity United intends to issue, if a bankruptcy judge approves.
Overall, United plans to set aside 8 percent of the equity it plans to issue - at a value of around $152 million - for about 400 salaried and management employees.
The proposed incentive plan for senior managers and directors of the nation's No. 2 airline will be a touchy issue as a Chicago bankruptcy court starts hearings Jan. 18. about United's plan for exiting bankruptcy.
Unions representing workers at United, a unit of Elk Grove Village, Ill.-based UAL Corp., blasted the potentially lucrative equity programs Wednesday, noting that United workers have agreed to millions of dollars of pay cuts to help restore the airline to financial health.
Charlotte.com (via AP Wire)
United to pare exec stock plan
Despite cut, unions say $75 million for top 8 is excessive
United Airlines is cutting back the size of a stock-award plan for its executives and directors but still plans to set aside shares with a potential value of $75 million for its top eight executives.
The company's unions, despite the smaller award, plan to contest the carrier's emergence from bankruptcy on the grounds the plan is excessive.
United said in a Wednesday filing with the Securities and Exchange Commission that its board approved a plan to set aside 13.75 million shares for 400 top executives and the company's directors. That's one-quarter fewer than the 18.75 million shares United originally suggested would go into its incentive plan.
Most of the stock would be issued as soon as United exits bankruptcy and would be a combination of restricted stock, which could be sold by the executives only over a four-year period, and stock options, which would provide value only if United stock rises.
Rocky Mountain News