United Airlines has announced that CEO Oscar Munoz will give up his planned chairmanship of the company’s board in 2018, less than two weeks after United passenger David Dao was infamously forced to give up his seat on an overbooked flight.
According to a regulatory filing released Friday, Munoz asked for his employment agreement to be amended, “leaving future determinations related to the Chairman position to the discretion of the Board.”
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The company also said that it would be tweaking its compensation policies for executives in order to better tie incentives to customer satisfaction targets.
“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 stated.
The airline has endured a turbulent couple of weeks ever since video emerged of a bloodied Dao being forcibly dragged off a flight.
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Munoz initially claimed that Dao was being “disruptive and belligerent,” but later said he was ashamed of the incident and promised that “this will never happen again on a United flight.”
However, he maintained that he wouldn’t step down.
Munoz took over as president and CEO of United in September 2015.
— With file from the Associated Press
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