United CEO won't add chairman title in 2018 as was planned


Two weeks after a passenger was violently dragged from one its planes, United Airlines says it is to link pay more closely to customer satisfaction.

Munoz also agreed to the removal of another contract clause that would have allowed him to resign his post as chief executive if he was not also given the role of chairman, according to the filing.

The airline's parent company, United Continental Holdings (UAL), said in a public filing on Friday that Munoz asked that his employment agreement be changed to remove terms that would have made him chairman of the board of directors. Last year, he received a total of $18.72 million for his services.

Millions of people from around the world watched the video as the screaming and bloodied 69-year old Dr David Dao was forcefully dragged down from his seat. Munoz later apologized repeatedly for United's handling of the situation.

United was due to answer detailed questions about the incident at a Senate panel on Friday, but the airline requested a further week's postponement.

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United executives said this week it was too early to know if the widely publicized incident has affected ticket sales.

Future appointments to the chairman role will now be at the board's discretion. Munoz said earlier this week that Dao's treatment was a "humbling learning experience" for United and accepted full responsibility. He finally appeared on ABC's "Good Morning America" with a more contrite message and promised a full review of United's policies regarding oversold flights. It is expected by the end of next week. Munoz had been on the airline's board while serving as CEO of freight railroad CSX Corp. Munoz, who became United's CEO in September 2015, was originally supposed to become chairman in 2017. However, it still generally ranks poorly in surveys of airline travelers. He already agreed previous year to delay becoming chairman, after the board was revamped as part of a deal with two activist shareholders.

Munoz earned $18.7 million past year as he collected a multimillion-dollar signing award.

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