Long-time finance chief of United Airlines parent, retiring at the end of the month, will get at least that much in severance.

Stephen Taub and Roy Harris, CFO.com | US

October 13, 2008

Long-time UAL Corp. executive vice president and finance chief Jake Brace, who is retiring at the end of this month, will take with him at least $2.4 million in severance pay.

According to a regulatory filing, Brace will fetch twice the sum of his base salary of $653,125, plus a target annual incentive amount that is 85 percent of his base salary. One-twelfth of this amount will be paid on Nov. 8, with the remainder to be paid in a lump sum in January 2009.

In addition, Brace remains eligible to receive a prorated payment for 2008 under the company's Success Sharing and Profit Sharing Plans and will be paid for his unused vacation for 2008 and his accrued vacation for 2009, according to the filing. Last year, Brace received $214,772 under the Success Sharing plan.

Also, all equity awards previously granted to Brace will vest immediately and all stock options will remain exercisable through the original award term.

The parent company of United Airlines had a $2.7-billion net loss in the latest quarter, as it focused on cost controls in an extremely tough market. It also reported strengthening its cash position by raising $90 million through news financing, asset sales, and the freeing up of $130 million in restricted cash.

According to the Chicago Tribune, Brace will be able to cash in 91,534 restricted shares, which will vest when he officially leaves on Oct. 31. They were worth $551,034, based on Friday's closing price. He also holds an additional 329,000 stock options that are underwater, the paper noted.

Under his severance deal, Brace also will receive outplacement consulting services as well as certain medical and travel benefits through September 30, 2012, after which he will receive retiree medical coverage and retiree travel benefits, according to a regulatory filing.