For Immediate Release: April 30, 2008
Contact: Sara Nelson, 847-292-7170 ext. 524
UAL Shareholders to Vote on Executive Compensation
Flight Attendant Union President Gives Shareholders Chance for ‘Say on Pay’
Chicago – As an individual shareholder, Greg Davidowitch, President of Association of Flight Attendants-CWA, AFL-CIO (AFA-CWA) at United Airlines, submitted a stockholder proposal for a Shareholder Advisory Vote on Executive Compensation (‘Say on Pay’). Once approved, shareholders would achieve an annual advisory, non-binding vote on executive compensation submitted by the United Board of Directors.
“Executive ‘pay-for-pulse’ must die at United Airlines. The notion that executives are paid for performance, but continue to be richly rewarded when they fail shareholders, workers and passengers is absurd,” stated Greg Davidowitch, AFA-CWA President at United. “How is it conscionable for executives to reap substantial salary increases and bonus packages, while workers and passengers continue to suffer the effects of bankruptcy.
The 2007 Airline Quality Report reflects abysmal numbers - lower than previous years in almost every area for United Airlines. Meanwhile, Wall Street is giving the company a failing grade: stock prices have plummeted to a quarter of the value they had at the beginning of the year, reflecting disillusionment of shareholders. Tilton continues to fail even on his single-minded goal of consolidation.
Unfortunately, UAL Corporation paid CEO Glenn Tilton $10.3 million in total compensation in 2007. This includes an increase of 24% in his base salary from the previous year, $422,425 in non-equity bonuses and $155,968 in other compensation.
“There’s a reason these ‘Say on Pay’ proposals have become commonplace in England, Sweden, Australia, and elsewhere,” said Davidowitch. “The ‘Say on Pay’ proposal is a measured, appropriate first step to address successful, proper stewardship of the corporation and address the disparity between executive compensation and performance. There are roughly 90 similar proposals filed at U.S. public companies and it has received a major vote of stockholders at eight companies so far. We believe shareholders are eager to achieve a say on the pay of those who control the interests of their investments.”
Earlier this month AFA-CWA leaders unanimously endorsed the proposal for ‘Say on Pay’ and committed the Union to a campaign to achieve majority shareholder approval on the proxy proposal between now and the annual UAL shareholders meeting in Woodland Hills, CA on June 12, 2008.
“Tilton and the UAL Board of Directors have failed shareholders, passengers and employees. They have left a foul taste in the mouth of everyone with whom they come in contact,” Davidowitch stated. “‘Say on Pay’ is not only appropriate at United Airlines, it’s a necessity.”
More than 55,000 flight attendants, including the 17,000 flight attendants at United, join together to form AFA, the world’s largest flight attendant union. AFA is part of the 700,000 member strong Communications Workers of America, AFL-CIO. Visit us at www.unitedafa.org.