United Airlines CEO Oscar Munoz will not be promoted as company chairman next year, according to a federal filing on Friday.
Munoz reportedly initiated the decision himself, as he “desires to remove the provisions…related to the future appointment of Executive as Chairman of the Board” and leave “future determinations related to the Chairman position to the discretion of the Board.”
The news follows a string of bad PR that has plagued United’s reputation since April 9 when passenger Dr. David Dao was violently dragged off his seat because he refused to give it away for a crew member.
In an earlier statement, Munoz described Dr. Dao as “disruptive and belligerent,” but a passenger’s video clip seemed to tell otherwise.
Dr. Dao, represented by prominent Chicago lawyer Thomas Demetrio, is expected to file a lawsuit that will likely be settled in the millions of dollars, experts predicted. Other than assault and battery, his legal team may file charges such as intentional infliction of emotional distress, defamation, false imprisonment and breach of contract.
Munoz, who earned $18.72 million in 2016, asserted that he will not resign and that none of his employees will be fired for the scandalous incident. As per the filing, the airline will revise this year’s executive compensation to tie incentives for boosting customer satisfaction, Reuters noted.