Union Opposes United Pay Scheme

United Airlines workers are opposed to an executive compensation plan that would, in effect, earmark stock valued at $130 million for incentives.

The pay perk is likely to dominate the company’s annual meeting in June when shareholders will vote to set aside 8 million shares to fund the incentive plan.

Chicago-based UAL Corp.’s board approved the measure on March 20, according to a Securities and Exchange Commission filing.

In February 2006, as the company exited a bankruptcy, United executives benefited from almost $150 million in stock options according to a story in the Chicago Tribune.  Greg Davidowitch, leader of United’s flight attendants believes the incentive plan is  “just another money grab,”  the Tribune quoted him as saying.

United’s spokeswoman, Jean Medina however said: “The new incentive plan’s eight million shares will provide the company the opportunity to make awards over the next three to five years, enabling us to attract, retain, and reward exceptional senior leaders.”

Experts have been questioning the airline's timing as it explores a potential merger with US Airways Group Inc.