United Chairman, CEO Gets Compensation Worth $39.7 Million in First Year Out of Bankruptcy

Author: Jeremy Herron

NEW YORK (AP) -- The chairman, chief executive and president of UAL Corp., parent of United Airlines, received compensation worth $39.7 million in 2006, the company's first year as a standalone company after emerging from three years of bankruptcy protection.

The lion's share of Glenn Tilton's remuneration came in the form of stock and option awards granted in February, including an award the Chicago-based company valued at $20 million when it was issued Feb. 2, one day after UAL emerged from court-protected bankruptcy.

Tilton received subsequent awards worth about $18 million over the next four weeks. He was paid a base salary of $687,083, received $839,028 in non-equity incentive plan compensation and was granted other compensation of $210,959.

Among the perquisites Tilton received was the use of a company car and driver, which UAL said was worth $40,196. He also received unlimited air travel aboard United Airlines and reimbursement for financial management advisory service.

The Associated Press calculations of total pay include executives' salary, bonus, incentives, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year. They may vary from totals listed in the summary compensation table in the company's proxy filed with the SEC.

UAL's bankruptcy filing made headlines in 2002 because it was the largest ever by an airline. The company labored to reduce operating costs and eventually received permission to terminate its pensions covering 120,000 workers, shifting $5 billion in obligations to a federal pension guarantor in one of the largest pension defaults in U.S. history.

UAL shares rose 22 cents to $38.54 in electronic aftermarket trading after falling $1.09, or 2.8 percent, to close Monday at $38.32 on the Nasdaq Stock Market.