Stung by the global criticism of how United Airlines (NYSE:UAL) forcefully dragged down one of their passengers, the Chicago, Illinois-based carrier is now making all the right moves. They have decided to link the salaries of their executives with customer satisfaction. This was learned after the company made a filing to the US Securities and Exchange Commission. Also, Oscar Munoz, the Chief Executive, won’t take over as the Chairman, as anticipated. His contract has already been amended.
Listed as United Continental Holdings Inc., the company said the board will now decide who will take over as the Chairman next year. The filing also revealed the salary of Munoz. Last year, he received a total of $18.72 million for his services.
The Filing Made By United Airlines
The filing said, “United’s management and the Board take recent events extremely seriously, and are in the process of developing targeted compensation program design adjustments to ensure that employees’ incentive opportunities for 2017 are directly and meaningfully tied to progress in improving the customer experience”.
Millions of people from around the world watched the video as the screaming and bloodied 69-year old Dr David Dao was forcefully dragged down from his seat. In the process, the doctor broke his nose and lost two teeth. There were calls on the social media of a total boycott of United Airlines. Rival airline businesses came out with parody advertisements.
The US Senate Commerce Committee even sent a letter to United after the incident, asking about their policy of removing passengers because of overbooked flights. The Committee also asked United to show the reason why Dr Dao was removed.
United Airlines Under Heavy Scrutiny
The airline has been under heavy scrutiny since then, with several other reports coming out of how badly they treat their passengers. Oscar Munoz was forced to apologize and he promised a “thorough” review of their booking policies. He even said he feels “shame and embarrassment” in the way the passenger was treated.
But all this was still inadequate, as thousands demanded the resignation or removal of the Chief Executive. It soon became a huge PR disaster for the business.
What made things worse for United Airlines (NYSE:UAL) was the first reaction of Munoz after the incident. He had said that Dr Dao was “disruptive and belligerent”, and even went on to thank the airline officials for doing a good job.