Congressman Decries Executive Compensation at Bankruptcy UAL
Mr. Glenn Tilton
UAL Chief Executive
UAL Corporation
P.O. Box 66100
AMF O'Hare, IL 60666
Dear Mr. Tilton:
United Airlines is very well-known in my district, as the third most frequently traveled airline out of SeaTac International with 13,832 aircraft landings and a total of 3,185,454 passengers carried in 2004 exclusive of United Express. I have spoken with many of my constituents who have lit up with admiration for the many United employees who remain deeply devoted to their airline, especially while the airline is undergoing Chapter 11 bankruptcy. United employees sacrifice for, and take much pride in, their airline.
Bankruptcy proceedings are difficult for both management and salaried employees; everyone shares in the work of returning the company to strong financial standing. Measures to achieve this are most effective when all levels within the company are certain the financial burden is shared. Those who have accepted pay cuts, such as the 9.5% cut the flight attendants agreed to just a few months ago, find it difficult to maintain a positive outlook when management does not accept compensation adjustments similar in scope.
The pay cuts that United management have accepted go a long way towards sharing the burden of the difficulties experienced by United. The Success-Sharing program represents a somewhat unbalanced picture of the distribution of responsibility and reward that United is experiencing. The capping of salaried employee bonuses at five percent, while management receives up to 50%, presents a quandary-while salaried employees take home less financially every year, only one of United's five executives received less financial compensation in 2004 than 2003.
My constituents have a stake in seeing that the company does well. Revisiting the Success-Sharing bonus program is one way to create a shared responsibility for the financial success of the company between management and salaried employees. During the difficult days ahead, improving the morale of the United family can be achieved by management showing their commitment to maintaining the viability of the company by willingly sharing, along with salaried employees, the financial hardships that will be required.
I realize that management is working with vigor during these times as well, and it is not my place to be judgmental about any person's compensation, but I do think it important to note the impact of management decisions as it bears on the ability of the United team to achieve its goals, one of which is, I hope, to keep my constituents flying United.
Very truly yours,
Jay Inslee
Member of Congress
