Yesterday we wrote about how Jeff Smisek
resigned was forced to leave United for some criminal activity.Well today, we are taking an inside look on what exactly his severance package will look like.
According to this Yahoo Finance article,
Here’s what Smisek will get:
- A lump sum cash separation payment of $4.875 million.
- 60,746 shares of United Airlines (UAL) common stock.
- An annual performance bonus prorated to the date of separation.
- Long-term performance bonus.
- The title to his current company car.
- Flight benefits for life.
- Free parking for life at predesignated parking locations.
- Company health benefits until he is eligible for medicare.
- United will help Smisek find a new job through outplacement services.
Here’s what United will no longer pay for:
- Gym membership.
- Accounting services.
- Legal services.
- Disability insurance.
The article goes on to state, United Airlines CEO Jeff Smisek resigned on Tuesday amid a federal corruption investigation.
At the same time, United informed the Securities and Exchange Commission that Smisek would be receiving $4.9 million in cash and more than 60,000 shares of stock in his severance package.
But there’s a catch.
The separation agreement also includes a “clawback” clause that if triggered will require Smisek to return much of his severance benefits.
According to United Airlines’ SEC filing, the clause will take effect if Smisek is found to have done anything illegal while running the airline.
What are your thoughts on this whole Jeff Smisek scandal? Feel free to comment below.