United signs Tilton to four more years

[FlyKLM747]

UAL Corp., parent of United Airlines, said it has extended Chairman,

President and CEO Glenn Tilton's contract through 2011, replacing a previous agreement that would have expired on Sept. 1, 2007.

The UAL board also approved a new four-year deal for Executive VP and COO Pete McDonald and promoted Senior VP-Worldwide Sales and Alliances Graham Atkinson to the position of executive VP and chief customer officer. VP-North America Sales Jeff Foland was named to succeed Atkinson.

"Under Glenn Tilton's leadership, United completed a $23 billion restructuring and returned to profitability, and we look forward to Glenn's ongoing leadership as United implements its strategic business plan," said James O'Connor, UAL's lead director.

Tilton's new agreement, which took effect Sept. 1, calls for an annual salary of $850,000, up from $605,000 last year, "subject to increases as part of the normal salary program for United's senior executives," according to a filing with the US Securities and Exchange Commission.

It also provides for "an aggregate value of awards under United's long-term incentive plans beginning in 2007 and in each year thereafter equal to no less than 400% of the base salary midpoint of [CEOs] of comparable companies, provided that such aggregate value will not be less than 400%" of Tilton's current base salary. Tilton's bonus in 2004 was $483,000, according to the Associated Press.

McDonald's agreement provides for an annual salary from Oct. 1 of $700,000 and an annual incentive bonus "with a target rate equal to 70% of his base salary for 2006 and a target rate equal to 85% of his base salary for each year thereafter." He also will receive a retention payment equal to $2.6 million payable in three annual installments to compensate for the termination of restricted shares scheduled to vest over the next three years.

[T-Bird76]

Four more years of this guy and there won't be four more years of UAL.

[hiss srq]

good lord if airline management had a brain these days the wonders that could happenand this is not one of the airlines with a brain obviously. Good bye United one way or anther this time around I guess

[Matt Molnar]

"Under Glenn Tilton's leadership, United completed a $23 billion restructuring and returned to profitability, and we look forward to Glenn's ongoing leadership as United implements its strategic business plan," said James O'Connor, UAL's lead director.

Of course Tilton's leadership led to the disappearance of profitability and the need for a $23 billion restructuring in the first place. I heart corporate press releases.