HR Managers on HR.BLR.com Say to United Airlines Chief: Lead by Example
From: Business Wire
OLD SAYBROOK, Conn.--(BUSINESS WIRE)--June 21, 2005--The president of United Airlines might be more popular with the nation's human resource professionals if "he would lead by example" on his pension, based on the results of an online poll at HR.BLR.com, a website for human resource professionals. The poll coincides with increased congressional concerns over the health of the nation's defined benefit pension plans and criticism of excessive executive compensation.
The poll asked, "Should the CEO of United Airlines lead by example and give up his extra pension?" The responses at HR.BLR.com, State HR Compliance and Tools, broke down this way:
Yes - 95%
No - 5%
The poll on the Business & Legal Reports, Inc. (BLR) website was conducted in May and drew 776 participants.
A federal bankruptcy judge ruled in May that United Airlines could terminate its employee pension plans covering 134,000 people. The Pension Benefit Guaranty Corporation will assume the airline's $3.2 billion pension obligation. According to published reports, Glenn Tilton, United CEO and President, has a guaranteed $4.5 million pension package.
Susan Prince, Managing Editor for HR products at BLR, commented on one of the most lopsided polls ever conducted at the site: "Human resource managers had a visceral reaction to the poll question, showing the complicated role they play."
"Even though HR strives to attract and retain talent to help business success," Prince continued, "they are the ones who have to rally the troops when there is devastating news like a pension default."
Congress is considering new pension reform legislation after the $9 billion United pension default. The Pension Protection Act, sponsored by Rep. John A. Boehner (R-Ohio), would help strengthen protections for the approximately 20% of American workers covered by defined pension benefit plans, and guaranteed by the Pension Benefit Guaranty Corp.
