A controversial new incentive plan for United Airlines executives is drawing fire from airline employees and criticism from the blogosphere.
The plan involves setting aside 8 million shares of United stock worth $130 million to fund this new incentive program and this hits particularly close to home for United workers as they are still upset over the airline doling out $150 million in stock benefits to company brass as the airline emerged out of bankruptcy in 2006.
Greg Davidowitch, president of United Master Executive Council had harsh words for the proposal:
It’s just another money grab. To propose something like this is completely outrageous and can only serve to further erode the already tenuous relationship between flight attendants and management.
United appears to be saying that it wants to replace the original plan, which expires next year, and needs more shares to do so since that plan is tapped out.
United spokeswoman Jean Medina defended the incentive as a necessary step:
The new incentive plan’s 8 million shares will provide the company the opportunity to make awards over the next three to five years, enabling us to attract, retain and reward exceptional senior leaders.
United’s timing on this has been questioned by experts in light of the potential merger with US Airways Group Inc.
Recalling Charlie Leocha’s article from last week, it seems that this story runs along that same line of thought. We’d love to hear your thoughts. Sound off in the comments below or in the forums.
