United CEO will not chair board as planned after scandal
Oscar Munoz, the CEO of United Airlines, will not get the expected promotion to chairman of the board in 2018 after a scandal involving the forcible removal of a passenger from a United flight. The necessary amendments have already been included in Munoz’s contract. The company will also reconsider the bonus system to its executives, according to an official statement. According to Reuters, Munoz received a $18.72 million bonus in 2016.
"United's management and the Board take recent events extremely seriously, and are in the process of developing targeted compensation program design adjustments to ensure that employees' incentive opportunities for 2017 are directly and meaningfully tied to progress in improving the customer experience," the official statement said.
On April 9, a 69-year old passenger was forcibly removed from a United Airlines flight from Chicago to Louisville after the airline failed to find volunteers to make room for four of its employees. David Dao, the Vietnamese American passenger, was dragged out of the cabin by airport security officers. According to his lawyer, Dao suffered a concussion, had his nose broken and lost two teeth. Dao is reportedly going to sue the carrier.
In his first statements following the incident, Munoz did not apologize to Dao, claiming that the passenger was acting in an unruly manner. The incident, along with the initial reaction from Munoz, caused waves of discontent, with social media users in the US, China and Vietnam calling people to boycott the airline. Several days after the scandal Munoz changed his mind saying that “no one should ever be mistreated this way”, regarding the forcible removal of Dao.
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