United Continental Holdings Inc. removed contract provisions that would have made its embattled Chief Executive Officer Oscar Munoz chairman next year.
Future determinations related to the chairman position are left to the discretion of the board, the carrier said in a regulatory filing Friday. Munoz had been expected to become chairman at next year’s annual shareholders meeting, according to a regulatory filing from last April.
The decision to remove the provisions came less than two weeks after carrier was engulfed by a global public-relations crisis after the passenger’s forced removal from a Chicago flight to Louisville, Kentucky. The passenger, David Dao, suffered a concussion, broken nose and two lost teeth after he refused to give up his seat for a United crew member.
Munoz agreed last year to delay taking on the chairman’s position after the board was revamped as part of a deal with two activist shareholders. The company named Robert Milton as chairman, and three incumbent directors decided not to stand for re-election.
Munoz said earlier this week that Dao’s treatment was a “humbling learning experience” for United and accepted full responsibility.
The CEO’s initial reaction drew scorn worldwide last week when he called the incident “upsetting” and apologized for having to “re-accommodate” the passengers who were asked to leave the plane. Hours later he told employees that Dao had been “disruptive and belligerent,” based on early reports.
He finally went on ABC’s Good Morning America with a more contrite message and promised a full review of United’s policies regarding oversold flights.