UAL - TILTON
- "REALLY SLICK" GLENN!!! ANYTHING ELSE UP YOUR SLEEVE OR ANY COMMENT???BUD BROWNShared Sacrifices? Tiltons Compensation Scandal
A couple weeks ago we shared news reports with you regarding Tiltons refusal to take a scheduled raise to $845,500 and instead kept his salary at a mere $712,500 not withstanding the:
- $1.5 million in stock payments,
- $3 million signing bonus, and
- special $4.5 million pension trust.
Non-bankrupt American Airlines chief executive, Gerard Arpey, makes $200,000 less than Tilton and recently declined a nearly 22 percent raise offered by his company's board.
Since that time we have discovered that Tilton actually took the raise for a period of time!
Heres a chronology of events regarding Tiltons latest compensation scandal:
Its almost two years later and we are still in bankruptcy. Now he is putting our pensions on the chopping block and planning for another Section 1113 to take more concessions.
- On April 4, 2003, in a letter to Uniteds General Counsel, Tilton agreed to a 14% reduction in pay from $845,000 to $712,500 precisely during the time that Section 1113 negotiations were at their climax, the deadline for negotiating employee concessions was looming and employees were demanding to see sacrifices from management.
- On April 16, 2003 the Emergency Wartime Supplemental Appropriations Act, 2003 was enacted. The Act provided billions of dollars in relief to the airlines and contained a one year restriction limiting the pay of an airlines two most highly compensated executives to their salaries in 2002. This restriction has no effect on Tiltons compensation.
- On May 13, 2004, Tilton submitted a letter to Uniteds General Counsel stating, now that the compensation restriction period set out in the Act has expired, at the request of the Board of Directors I revoke my April 4, 2003 letter. As a result, Tiltons pay was increased from $712,500 to $845,000. During this same time, Tilton led the management group that was demanding millions of dollars in cuts to retiree health care!
- On August 2, 2004, United filed its 10-Q with the Security and Exchange Commission (SEC) and stated that in the wake of the ATSBs rejection Tilton made the decision to have his salary revert to its previous level of $712,500 effective August 1, 2004. This means that Tilton actually took the raise after just one year of shared sacrifice when all of the front-line employees of United Airlines were bound to six year Contracts with concessions in not just wages, but also work rules, benefits and pensions. It remains unclear if Tiltons increase was effective as of April 1, 2004 when the restriction he referenced was lifted, or as of the date of his May 13, 2004 letter.
Throughout this bankruptcy we have all been eager to work collaboratively to see our airline succeed. We have sacrificed, we are working longer for less and we are presenting record breaking service performance. We are dedicated to our airlines success. Is Tilton?
Tilton talks about having to make the tough decisions. How tough was it for Tilton to take a raise while threatening to cut retiree health care? How tough was it for Tilton to tell all of us to stay United, while taking a raise as the rest of us struggle?
Is this a man we can trust to lead us to success? Is this a man we can trust?
This is the man we had to appropriately compensate to lead us out of bankruptcy. Its almost two years later and we are still in bankruptcy. Now he is putting our pensions on the chopping block and planning for another Section 1113 to take more concessions.