United CEO won't add chairman title in 2018 as was planned

United Airlines is making steps to recover from the brand damage caused when it violently removed a passenger from a flight, bringing in a new pay-scheme based on customer satisfaction.

"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", the filing said.

Under a previous employment agreement, United Continental Holdings chief executive Oscar Munoz was scheduled to become chairman of the board next year, in addition to retaining his current position.

DALLAS (AP) — United Airlines said CEO Oscar Munoz, who came under withering criticism for the airline's handling of a passenger-dragging incident, will not automatically add the title of chairman in 2018 as planned.

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The airline called police officers to drag 69-year-old Dr David Dao from his seat to make room for airline staff after the flight was over-booked.

The footage, which has been watched by millions on social media, shows him being dragged along the aisle and then running back on to the plane bloodied and screaming.

United said on Friday it had asked a US Senate panel for an extra week to answer detailed questions about the incident. Munoz later apologized repeatedly for United's handling of the situation.

Mr Munoz later confirmed that the company would no longer use police officers to remove passengers and said a review of how the company handled oversold flights would be made available at the end of April.

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Munoz has left "future determinations related to the Chairman position to the discretion of the Board", according to the regulatory filing.

Munoz, a former railroad executive who took over United in 2015, had already been pressured by activist investors to improve the airline's performance, including in customer relations.

Most of Munoz's compensation a year ago was in stock. Until 2016, the airline used customer surveys as one tool in determining compensation. The company on Friday said in a regulatory filing that about US$6.8 million of the total was related to a signing bonus that Munoz was promised past year.

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