Tilton Management Awards Itself Bonuses on Bankruptcy Exit
Were you or I forced to declare bankruptcy, there’d be little to celebrate. Not so for the Tilton regime at United.
When United exited bankruptcy in 2006, it’s safe to say that the retirees and pensioners holding United stock did not throw a party. They lost their entire investment. So did we working pilots, through loss of equity we had built, loss of pensions, and a new pay plan that was forced down our throats in bankruptcy court.
As customers, we doubt you have a lot of enthusiasm for “service enhancements” that include route cancellations, elimination of food from most flights (unless you wish to pay for it), reductions in frequency, deferral of replacement equipment, and much more. Leave a comment below, and help us recall the full list.
The corks from the champagne no longer available on your flights were popping in corporate headquarters, though, as senior managers feasted on tens of millions of dollars in bonuses on the exit from bankruptcy. Glenn Tilton alone received almost $40 million in bonus money. Senior managers protected the enhanced income of other senior managers, while telling us that the airline had to remain revenue neutral, and that our customers needed to bring $5 for a sandwich on a six hour flight. It’s amazing they could say it without blushing. By the way, most other airlines leaving bankruptcy managed to do so without writing big bonus checks to their senior managers.
Shared sacrifice was the company’s mantra in bankruptcy while shared reward was not. Both statements were lies.
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Reader Comments (4)
Tilton and board should be ashamed of themselves!
Why wasn't the $250 Million Dollar "Special Dividend" wasn't written about??
Blankets have been taken off the 737 aircraft. I was unaware of this until a flight attendant made an announcement yesterday. Blankets? How much weight or cost can they be? I'm assuming management thought this through and assumes all 120 passengers have the same comfort level on cabin temperature. Blankets!@!??
Yak. Shouldn't we pay our pilots and mechanics MORE since they are directly responsible for the safety of millions of people a year, instead of the top 4 executives (at least) making millions and millions in 'bonusus' for leading United down a path to bankruptcy???
Or perhaps use those bonuses to pay for fuel instead and stop bending the consumer over. THAT is why more and more people are migrating over to Southwest. People see the BS that is going on, and see right through it. Poor management.
UAL needs to become employee owned again.