Skift Take
From outward appearances, the prospects looked bleak several weeks ago for the hedge fund-led proxy fight to succeed at United but the dissidents had the ear of other big shareholders and the United board. It now appears as though the dissidents, including airline and online travel veterans, accomplished a whole lot.
Oscar Munoz, who became United Airlines president and CEO in November 2015 and had an agreement to also become chairman in 2017, would have to wait at least until 2018 to add the title now that the airline reached a compromise with dissident stockholders and will name former Air Canada CEO Robert Milton as chairman.
Kicking down the road the issue of Munoz consolidating both the CEO and chairman's titles, even in 2018 Munoz would have to win the board's approval to head it up.
The fast-moving resume changes and board lineup came in a compromise with Altimeter Capital Management and PAR Capital Management, which together own 7.2 percent of United equity, and sought to place six new directors on United's board and to replace United chairman Henry Meyer III.
United announced today that Meyer will leave the board, as will directors John Walker and Charles Yamarone. Former Orbitz CEO Barney Harford along with PAR managing partner Edward Shapiro will join join the United board, as will an additional mutually agreed upon independent director within six months.
Never Judge A Book By Its Cover
In the weeks following Altimeter and PAR's announcement in early March that they would wage a proxy fight to get six board seats, including one for former Continental CEO Gordon Bethune, from outward appearances the dissidents' chance for success looked bleak.
United's unions in public statements were lining up against the dissidents, charging that they were trying to take over the United board and were acting like corporate raiders, seeking to compromise United's potential turnaround for short-term financial gain.
And United's CFO and other cr
