United Airlines CEO Scott Kirby saw a substantial increase in his total compensation in 2023, nearly doubling from the previous year. Kirby’s pay amounted to nearly $18.6 million, with a base salary of $1,075,000, $10.7 million in stock awards, and $6.6 million in non-equity incentive compensation. The spike in Kirby’s pay can be attributed to the end of CARES Act restrictions on executive pay, allowing for a return to pre-pandemic executive compensation structures. United Airlines, like other airlines, faced restrictions on executive pay as a part of the CARES Act bailout received during the pandemic.
Kirby’s ambitious plans for United Airlines involve significant growth in the carrier’s fleet and network expansion, known as the “United Next” plan. United has placed large aircraft orders, expanded international routes, and focused on the demand for international travel, premium seating, and basic economy offerings. The carrier has aimed to compete profitably in the low-cost market while also enhancing its international business class product, Polaris. However, certain challenges, such as delivery delays and certification issues with Boeing aircraft, have impeded some of United’s growth plans. The carrier has had to pause pilot hiring and ask some pilots to take unpaid time off due to these challenges.
United’s frustration with Boeing’s delays in aircraft delivery and certification has been evident, with Kirby expressing concerns at the JPMorgan Industrials conference. Uncertainty surrounding the certification timeline for the 737 Max 10 has led to delays in fulfilling United’s orders, impacting the carrier’s operations. In addition, United has faced safety incidents that prompted increased oversight from the Federal Aviation Administration, resulting in Kirby reassuring passengers about the airline’s safety measures. Despite these setbacks, United remains focused on addressing safety concerns and delivering a positive travel experience for its customers.
United’s strategic initiatives include expanding its basic economy offerings to compete in the ultra-low-cost market segment and upgrading its international business class product. The carrier has been optimistic about demand for international travel and premium seating options. While facing challenges with aircraft deliveries and safety incidents, United continues its efforts to grow its network and enhance customer choice across various travel segments. Kirby’s leadership in driving these initiatives reflects his commitment to establishing United as a competitive player in the airline industry and delivering value to both shareholders and customers.
Overall, United Airlines CEO Scott Kirby’s increased compensation in 2023 aligns with the company’s strategic plans for growth and expansion. Despite challenges related to aircraft delivery delays, safety incidents, and regulatory oversight, United remains focused on increasing its fleet, expanding its network, and improving its product offerings. Kirby’s leadership in navigating these challenges underscores his dedication to positioning United for long-term success in the competitive aviation industry. As the airline continues to address operational hurdles and enhance customer experience, Kirby’s vision for United’s future remains committed to driving value and innovation within the company.
