Listed as United Continental Holdings Inc., the company said that CEO Munoz was the one who amended the prior agreement and appointments of the chairman in the future would now be at the discretion of the board.
It said a prior employment agreement with Mr Munoz had been reversed, so he would not become chairman of the board in 2018. Munoz received a total of $18.7 million, including $6.8 million related to replacing his equity stake that he held when he was president of railway CSX.
After a man is dragged off a United Express flight on Sunday, April 9, 2017, United Airlines becomes the butt of jokes online and on late-night TV.
Leaders of the Senate transportation committee requested answers to a number of pointed questions over the handling of the incident by Thursday.
Dao’s lawyers have said he plans to file a lawsuit.
In wake of the incident, United’s share price plummeted as calls for a boycott against the carrier mounted.
United executives said this week it was too early to know if the widely publicized incident has affected ticket sales. He already agreed a year ago to delay taking on the chairman’s position after the board was revamped as part of a deal with two activist shareholders. So, I think we’re past that stage of needing Dr. Munoz to say anything’. Before being hauled from the flight, Dao, who emigrated from Vietnam in the 1970s, repeatedly accused the airline of discriminating against him for being ethnic Chinese, according to fellow passenger Tyler Bridges who was traveling back home from Japan. It is expected by the end of next week.
The ordeal led to demonstrations at Chicago’s O’Hare International Airport and turned into a public relations disaster for United Airlines.
Munoz now serves on the company board and was slated to chair it in 2018.
After the market closed Monday, United reported a $96 million first-quarter profit, down 69 percent from a year earlier largely because of higher costs for fuel, labor and maintenance. The airline has made some strides in improving its on-time performance, canceling fewer flights and losing fewer bags.
The carrier also revealed it would link executive bonuses in part to demonstrable progress towards improvements in customer experience.