When Oscar Munoz was brought on to be United’s CEO after Jeff Smisek had to resign in disgrace amidst allegations of corruption, the plan that was he’d also gain the Chairman title in 2017.
However as part of a deal with activist shareholders Robert Milton, former CEO of Air Canada became Chairman a year ago — and Munoz’s promised ascendancy was pushed off until 2018.
United CEO Oscar Munoz at Chicago O’Hare
Now in light of all of the turmoil at United, most especially the firestorm surrounding a passenger being dragged off of a flight and bloodied by police called to the plane amidst a denied boarding controversy, Munoz is no longer promised the Chairman position next year either.
United Continental UAL -0.34% Holdings Inc. moved to further stem fallout from the incident in which police dragged off a paying passenger from one its flights, saying its chief executive Oscar Munoz will no longer be taking on the chairman role and that it will revamp executive compensation incentives.
In a federal filing on Friday, United said its board is planning to revamp managerial incentive compensation to focus more on performance measures related to customer service.
In some ways this makes sense, United isn’t firing any employees over the incident they have to show that their leadership has some accountability.
At the same time with the hiring of Scott Kirby, former President of American Airlines, to be President of United — and with Munoz’s health issues and lack of airline experience — I’ve expected that Munoz would become non-executive Chairman in the near future with Kirby finally becoming an airline CEO.
United CEO Oscar Munoz Cutting the Ribbon on the Airline’s First New Boeing 777-300ER
If United’s board, in fact, doesn’t make Munoz Chairman next year that could push off Kirby’s rise — unless Munoz chooses to retire early, simply deciding he doesn’t need this airline job and would rather make the most of life with his family after having returned from a heart transplant.