UA Appoints 3 New Independent Directors & confirms Proxy Contest By PAR & Altimeter
Mar 7, 2016 | 9:47 am
#16
Join Date: Jul 2002
Location: Virginia, USA
Posts: 4,544
I find it odd (though not surprising given UA's crack PR machine) that they didn't contemporaneously disclose which directors are leaving. Generally I wouldn't get too excited about the quality (or lack thereof) of a corporate board but given that Oscar has been on that board for an extended period of time there is a chance that he actually consults with them more seriously/frequently than most company CEOs do. I'd be interested on if he has served with any of the new nominees on other boards.
Mar 7, 2016 | 10:56 am
#18
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Very good news to see a housecleaning at UA. Wonder who will be the fourth new director?
I've consistently posted since 2012 that UA's problems are not because of its rank and file employees or its route structure or its aircraft mix - the previous CEO and his cronies on the board were the problem. They were in over their head. That many of them have been fired is very good news for the shareholders and employees.
I've consistently posted since 2012 that UA's problems are not because of its rank and file employees or its route structure or its aircraft mix - the previous CEO and his cronies on the board were the problem. They were in over their head. That many of them have been fired is very good news for the shareholders and employees.
Mar 7, 2016 | 12:15 pm
#19
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Very good news to see a housecleaning at UA. Wonder who will be the fourth new director?
I've consistently posted since 2012 that UA's problems are not because of its rank and file employees or its route structure or its aircraft mix - the previous CEO and his cronies on the board were the problem.
I've consistently posted since 2012 that UA's problems are not because of its rank and file employees or its route structure or its aircraft mix - the previous CEO and his cronies on the board were the problem.
However, these are 3-4 "Independent Directors" - does that mean nobody gets canned and these new guys operate independently? Almost like outside consultants?
Last edited by REPUBLIC757; Mar 7, 2016 at 12:38 pm
Mar 7, 2016 | 12:29 pm
#20
Join Date: Mar 2012
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Utter recklessness is how I would put it - with Rainey probably being the most destructive of the sCO cronies that came on-board to UA.
However, these are 3-4 "Independent Directors" - does that mean nobody gets canned and these new guys operate independently? Almost like outside consultants?
However, these are 3-4 "Independent Directors" - does that mean nobody gets canned and these new guys operate independently? Almost like outside consultants?
Mar 7, 2016 | 12:40 pm
#21
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Join Date: May 2001
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Utter recklessness is how I would put it - with Rainey probably being the most destructive of the sCO cronies that came on-board to UA.
However, these are 3-4 "Independent Directors" - does that mean nobody gets canned and these new guys operate independently? Almost like outside consultants?
However, these are 3-4 "Independent Directors" - does that mean nobody gets canned and these new guys operate independently? Almost like outside consultants?
"Independent Directors" are board members who have no material or financial ties to the company or related persons or loyalty to management. With at least four new directors, the UA board will look very different this year. Independent Directors are not toadies, and Smisek had too many toadies on the board.
If the UA board is serious about improvement, then the CEO should NEVER be the Chairman of the board - Warren Buffett discussed this in his recent shareholder letter.
Mar 7, 2016 | 1:26 pm
#22
Join Date: Feb 2006
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Seeing Jim Whitehurst's name put a smile on my face. Below is a quote of a fellow FTer and my reply from an old PMUA thread about canning Tilton back in 2008. Some of us were impressed with what Whitehurst did at PMDL, and believed that he would have made an excellent CEO for PMUA. I see today's news as positive indeed.
Quote:
Originally Posted by elitetraveler
If I was the board, I would pursue Whitehurst now that CO is off the table for the moment.
I second that wholeheartedly. He was dumped by DL board because he saw no compelling reason to force the consolidation issue. I believed and still believe that DL made the wrong choice.
Originally Posted by elitetraveler
If I was the board, I would pursue Whitehurst now that CO is off the table for the moment.
I second that wholeheartedly. He was dumped by DL board because he saw no compelling reason to force the consolidation issue. I believed and still believe that DL made the wrong choice.
Mar 7, 2016 | 3:30 pm
#23
Join Date: Feb 2006
Location: Verdi, NV, SFO & Olympic (aka Squaw )Valley.
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Mar 7, 2016 | 5:33 pm
#24
Join Date: Apr 2013
Posts: 89
For those that don't know, Jim Whitehurst left Delta in 2007 (only 38 at the time) after being turned down for the CEO role that went to Richard Anderson.
http://archive.fortune.com/2007/08/2...tune/index.htm
"When Delta Air Lines named board member Richard Anderson as its new CEO Tuesday, speculation mounted that it would soon lose a major architect of its ongoing turnaround. Industry experts say that Jim Whitehurst, Delta's COO and an internal candidate for the CEO job, is expected to leave the company now that he's been passed over for the top post."
"Whitehurst, 38, is widely credited with spearheading the airline's customer service and international expansion strategies."
http://archive.fortune.com/2007/08/2...tune/index.htm
"When Delta Air Lines named board member Richard Anderson as its new CEO Tuesday, speculation mounted that it would soon lose a major architect of its ongoing turnaround. Industry experts say that Jim Whitehurst, Delta's COO and an internal candidate for the CEO job, is expected to leave the company now that he's been passed over for the top post."
"Whitehurst, 38, is widely credited with spearheading the airline's customer service and international expansion strategies."
Mar 7, 2016 | 5:58 pm
#25
Join Date: Mar 2012
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So two of the three independent directors had senior executive roles at airlines that UA either competes with (DL) or is allied with (AC). Would their non-disclosure agreements with DL and AC now be expired, and would their inside knowledge about these carriers be of value in charting UA's future course?
Mar 7, 2016 | 8:03 pm
#27
Join Date: Dec 2012
Location: YEG
Posts: 269
Milton - depending on who you talk to is the person responsible for the undoing of Air Canada. To say he is hated by the unions would be an understatement. I believe he has been working with Asian low cost carriers since leaving AC. The LCC piece makes me very nervous
Mar 7, 2016 | 10:34 pm
#28
Join Date: Sep 2009
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+1MM. And IMHO, Directors should be required to invest a significant portion of their personal wealth in the company of which they are directors with a 5 year post retirement vesting for withdrawal.
Mar 7, 2016 | 11:12 pm
#29
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Yes this one I'm kinda worried about. I'm curious if he's responsible for bringing the 3-4-3 configuration and packing 400+ PAX into the 77W.
Mar 8, 2016 | 6:04 am
#30
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Saw it just on CNBC, but activists are putting up nominations for 6 new directors to the board. One of the nominees is apparently Gordon Bethune. Will get a link if I can find one shortly...
ETA: It's behind a paywall at WSJ, but PAR Capital Management and Altimeter Capital Management (combined they own 7% of UAL stock) are putting forth the nominees. Apparently they want Bethune as chairman of the board. Certainly puts these recent nominations in a new light - perhaps a way to shore up support for the current board and try to head off this move.
ETA: It's behind a paywall at WSJ, but PAR Capital Management and Altimeter Capital Management (combined they own 7% of UAL stock) are putting forth the nominees. Apparently they want Bethune as chairman of the board. Certainly puts these recent nominations in a new light - perhaps a way to shore up support for the current board and try to head off this move.