Change Of Plans: United CEO Oscar Munoz Will Not Become Board Chairman
By Stephen Gossett in News on Apr 21, 2017 9:33PM
Even if nobody at United is getting axed over the international outrage and public-relations turf out that was United Express Flight 3411, the battered exec at the center of the vortex at least won't be moving up. Public filings show that United CEO Oscar Munoz will not be become the chairman of the company's board, as initially planned.
Insert "re-accommodated" jokes here.
The detail, first reported by CNBC, was included in an 8-K notification form to investors on Friday.
The amendment to Munoz's employment agreement states that future decisions about the chairman role will be left up to the board. The filing, provided to Chicagoist by spokesperson Megan McCarthy reads (emphasis ours):
"On April 21, 2017, United Continental Holdings, Inc. (“UCH”) and United Airlines, Inc. (collectively, the “Companies”) entered into the Second Amendment to Employment Agreement (the “Second Amendment”) with Oscar Munoz, the Companies’ Chief Executive Officer, amending his Employment Agreement with the Companies dated December 31, 2015, as first amended as of April 19, 2016. The Second Amendment, which was initiated by Mr. Munoz, removes the provisions in the Employment Agreement related to the future appointment of Mr. Munoz as Chairman of the Board of Directors of UCH (the “Board”), leaving future determinations related to the Chairman position to the discretion of the Board. As a result, the Second Amendment also modifies the definition of “Good Reason” such that the appointment of a Chairman of the Board other than Mr. Munoz, Robert A. Milton or Henry L. Meyer III would not constitute “Good Reason.""
Munoz currently serves on the company board and was slated to chair it in 2018. United did not provide further comment.
The news arrives the same day that a group of Senators released a statement that United, along with the Chicago Department of Aviation, notified lawmakers yesterday that they would not meet an April 20 deadline to explain the infamous dragging of Dr. David Dao. Both committed to providing a full response next week.
Dao, a Kentucky doctor, was dragged down the aisle of a United plane on April 9 after he refused to give up his paid seat for airline staff on the fully booked flight. He suffered a broken nose and concussion and lost two front teeth, according to his lawyer. Dao's attorney said that a lawsuit, which could target both the City of Chicago and United, is likely forthcoming.