That was followed by United Airlines announcing the resignation of its chief executive, Jeff Smisek, for his involvement in the corruption scandal with David Samson, former chair of the Port Authority of New York and New Jersey, involving special flights from Newark to Columbia, SC, where Samson has a home. In addition to Smisek's resignation, two other top United executives involved in the scandal have also departed.
The former CEO of Continental Airlines, Smisek led the merger of United and Continental in 2010. As CEO for the past five years, he has been confronted by a host of operating problems from delays, computer problems and breakdowns in the reservation system plus difficulties with merging the unionized workers of the two airlines. This has led to enormous pressure on Smisek from United's shareholders.
What is even more shocking about Smisek's departure is that the United board has granted him a $4.9 million termination settlement plus 60,000 shares of stock worth more than $3 million. He was also awarded lifetime flying and parking privileges, this year's bonus and his company car. This calls into the question whether the board exercised its responsibility to set a high bar on ethics for the company.