New Continental CEO Smisek foregoes salary
Continental Airlines’ new CEO, Jeff Smizek announced (04-Jan-2010) he is foregoing his USD730,000 annual salary and bonus until the company makes a full-year profit. In his first action since his appointment, Mr Smizek, in a letter to employees, said the company’s greatest challenge was “making money on an on-going basis.” Noting the USD1 billion in losses since 9/11, he said the company must change from managing from crisis to crisis to one it which it controls its own destiny. He added, “what I am asking is that you join me in making Continental profitable again. I’m asking that you do what you do best – provide our customers outstanding service while working more efficiently, bringing in new revenue and out-performing the competition”. The letter is more urgent considering the company faces expiring labour contracts this year.