Here’s a summarized update, from Alan Grayson:
Dr. David Dao was dragged off an overbooked United Airlines plane earlier this month, breaking his nose, knocking out two of his teeth, giving him a concussion and rendering him unconscious. All passengers then were deplaned so that a cleaning crew could mop up Dao’s blood. United CEO Oscar Munoz immediately released a statement commending the United crew for “flying right,” and condemning the bloodied passenger for “defying” the police and being “disruptive.”
Munoz received $14 million in United Airlines stock options last year for the hard labor of being United’s CEO, and likely is in line to receive at least that much this year. Let’s call it $28 million.
The day after Munoz’s tone-deaf “mea non culpa,” United’s stock dropped from $71.52 to $70.71, on four times the average volume. A week later, it was down to $67.75.
Then Munoz apologized.
Dr. Dao ended up in the hospital, needing corrective surgery, after he informed the United flight staff that he was a doctor, he had to be in a different hospital the next morning in order to help his own patients, and therefore he couldn’t give up his seat on the flight. Did Munoz apologize because he sincerely regretted that Dao’s nose was broken? Or did Munoz apologize because his stock options had lost $1.5 million in value?
A week ago, the United Airlines Board of Directors announced that Munoz would not be promoted to Chairman of the Board, as had been planned, but that he would remain CEO. Was Munoz denied his promotion because the Board realized that Munoz really isn’t up to the job of Chairman? Or because the directors are paid in stock options, too?
The supervisor of Chicago Airport Security, who oversaw the staff that dragged Dao off the plane, was fired on Thursday. Not because he was responsible for brutalizing Dao. But because it came to light that he had been fired previously, as the operations head of the Illinois Tollway, for sexual harassment.
No one else has been disciplined on account of the assault on Dr. Dao.
In a poll a week ago, 79% of the respondents who had heard about the incident said that they would rather not fly on United Airlines. Almost half said that they would be willing to pay an extra $66 and spend an additional three hours flying if they could avoid United.
What can we learn from this? I suppose that the lesson is that if you remove $1.5 million from some callous boss’s pocket, he can grow a conscience. Maybe there is hope for late-stage capitalism, after all.