United Airlines CEO Oscar Munoz Hospitalized; Company Rumored to be Mulling
Oct 26 2015
United Continental Holdings, Inc. said Friday that Munoz's family informed the company that he was admitted to a hospital on Thursday.
United may shed further light on the situation when it releases quarterly results on Thursday. A spokeswoman said the company would not provide additional information.
Smisek was forced out abruptly after an internal company investigation that paralleled a criminal investigation of the Port Authority of New York and New Jersey, which operates Newark Liberty global Airport, a United hub.
Munoz has confronted not only the turmoil generated by that probe, but United's existing struggles with union integration and computer breakdowns since being created in the 2010 merger between former United parent UAL Corp. and Continental Airlines, Inc. Unfortunately, the company declined to give any further details. Finally, Imperial Capital cut their target price on shares of United Continental Holdings from $75.00 to $65.00 and set an "in-line" rating for the company in a research report on Friday, July 24th.
It also goes without saying that the most important thing right now is for Munoz to get better. The message did not explain the CEO's absence.
United Airlines announced Monday that it would change its "corporate governance process" by Tuesday after the hospitalization of CEO Oscar Munoz. Still, while shares dropped roughly 3% in the wake of the first news reports about Munoz's hospitalization last week, stock was trading 1.57% higher, at $56.85 per share, late Monday morning. They are down 16 percent in 2015.
It is not even known where Munoz is being treated. He said the company has enough executive talent to continue its improvement efforts.
Yet both the SEC and the New York Stock Exchange do say companies should share anything that is "material", or that a reasonable investor would want to know, according to John Coffee, a professor at Columbia Law School who specializes in corporate governance and securities law.
Mr. Munoz's illness again has raised the question of how and when boards should tell shareholders about a CEO's illness.
"The United family's thoughts and well-wishes are with Oscar", Meyer said.