MIAMI — United Airlines’ CEO Oscar Munoz will be skipping his annual bonus from 2017 due to the setbacks the carrier has had this past year, the airline informed via a statement.
Munoz said that although there were some “incredible successes” in 2017, there were also some “setbacks” that he was accountable for.
— CNN International (@cnni) April 24, 2018
It has been said that regardless of whether he is to take the bonus or not, Munoz still made $9.6 million in 2017 as CEO. This is down from the $18.6 million he made in 2016, with $6 million of that coming from his previous company.
The carrier’s main setbacks stemmed from the controversy set with the removal of Dr. David Dao, who was dragged off the aircraft to make room for different passengers.
The story went viral on a global front. Munoz had to release a Mea Culpa following the airline’s first statement which was deemed insensitive to Dao and others that were affected by the incident.
On top of this, October 2017 saw a turbulent time for the carrier when it was announced via the earnings calls that United had entered themselves into what Munoz labeled as “a little bit of a competitive hole.”
This resulted in uncertainty in the markets in Wall Street, and ultimately, their shares took a hit as a result of the performance results.
With United’s performance trailing significantly behind American Airlines and Delta Air Lines, it has put the airline into question about its status as part of the US3.
When Munoz thought that 2018 was going to be a better year, another event hit his airline. In January, a pet had died on a United Airlines flight as it was forced to stay in the overhead bin, causing an uproar amongst passengers and customers of the airline.
Munoz has not had an easy few years. From recovering from heart surgery in 2016 to now fighting for better performance results in 2018, he has remained somewhat of a fighter, and that must be recognizable amongst the board of the airline.
The fact that the airline’s board hasn’t advised him to step down suggests that they still have the same confidence in Munoz as when he first joined in late 2015.
What’s in for 2018?
Although 2018 has not been incident-free for the United CEO, he is now hoping that all of the practices have been put in place and will be maintained.
Munoz’s goals will now focus on regaining the lost ground the carrier needs to find to become more competitive with all legacy and low-cost carriers in the US.
For many, they think that Munoz’s time will come. For that to become a reality, however, Munoz must carefully choose his decisions and not think too rashly.