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Tue, Sep 30, 2008

UAL Pilots Want Tilton's Pay Slashed

Say CEO Has Done Nothing To Earn Fat Paycheck

Pilots for United Airlines fired another salvo this week against management at their troubled airline, calling for the UAL Board of Directors to cut the pay of CEO Glenn Tilton, "as a reflection of concern and solidarity with passengers and employees who are being forced to tighten their belts."

According to the United chapter of the Air Line Pilots Association -- which will be first to admit they're not fans of the current regime at UAL -- Tilton's total compensation package comes to $10.3 million a year -- including salary, stock grants, options and other added extras. The pilots say that's the highest compensation package in the airline industry.

By comparison, American Airlines CEO Gerard Arpey is paid $4.6 million a year, Gary Kelly at Southwest Airlines makes $1.3 million, and JetBlue CEO David Barger gets $514,000.

"United's pilots believe that there is no justifiable reason for the worst airline executive to be compensated the most," the pilots write, noting UAL has lost more money this year than nearly all other US competitors combined.

"United Airlines is losing money, cutting back on service and asking passengers to pay more for less," said Captain Steve Wallach, Chairman of the United Chapter of the Air Line Pilots Association. "It's time for the Board to tie Tilton's pay to his performance."

Wallach added Tilton's level of compensation is another example of excessive pay to chief executive officers. "His pay is not an entitlement; he should have to earn his money, just like everyone else does," said the union leader. Captain Wallach noted United's stock price has fallen from over $50 a share to the current price of about $10 a share.

"It's an insult to the loyal passengers and hard-working employees of United to see the CEO pull down this kind of money when the airline is facing such deep challenges," added Wallach. "This pay package must go."

FMI: www.alpa.org, www.united.com, www.glenntilton.com

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