Munoz once again denied chairmanship at United

[jimntx]

"The board of directors of Chicago-based United Continental Holdings, the parent company of United Airlines, has for the second time in two years amended CEO Oscar Munoz’s contract to deny him the role of board chairman."

http://atwonline.com/airlines/unite...m=email&elq2=dbed33ee13ca472799b37d04151b43fb

Article cites Munoz' initial response to the doctor-dragging incident as part of the reason.

 

[eolesen]

I'm hearing mixed messages on whether or not the new activist shareholders drove this or whether it was Munoz who initiated things, but there's probably a little more to the story than what ATW went to press with.

Regardless, having the CEO also be the chairman is an outdated concept, so it doesn't bother me.

They made the original agreement when Munoz was wearing the CEO and President hats, and before Kirby showed up. It's entirely feasible Munoz is delaying to give Kirby another year to be ready to be named to the CEO position. He hasn't been there long enough for that to pass muster.

 

[FWAAA]

People a lot more wise than I am, like Warren Buffett, don't think CEOs should chair the board, and I've always agreed with that view. The CEO works for the board, and shouldn't set the board agenda or run the meetings. If UA has finally gotten on board with that (correct, in my view) philosophy, then good for the UA board.

On the other hand, if this is simply "punishment" for Oscar's lame initial response to the doctor-dragging incident, then thumbs down to the UA board.