Proxy group urges rejection of UAL incentive plan - Rueters 6/5/2008

NEW YORK (Reuters) - Shareholder advisory service Proxy Governance
Inc said on Wednesday it recommended that shareholders vote against
United Airlines parent UAL Corp's (UAUA.O: Quote, Profile, Research) 2008 incentive compensation plan, which reserves 8 million shares for issuance.

Proxy Governance said the company's executive compensation appears
somewhat high compared with peers, given relative financial
performance, and that equity grants are the cause of the high
compensation.

UAL was not immediately available for comment.

"We have recommended a vote against this plan, as the company's past
equity grants have not been sufficiently broad- based, and the company
has not provided adequate detail on the type or value of grants it
intends to make to executives should the plan receive approval," said
Proxy Governance in its recommendation.

Earlier on Wednesday, UAL said it will slash its work force and
domestic fleet, following similar cuts by rivals as the industry
grapples with soaring fuel costs and a weakening economy.

The plan calls for reducing domestic capacity 14 percent in the
fourth quarter. That means the elimination of 100 planes from the
fleet, as well as 1,400 to 1,600 job cuts. Included in the plan are the
previously announced layoffs of 500 salaried and management employees
and the retirement of 30 Boeing 737s.

(Reporting by Mark McSherry; editing by Carol Bishopric and Andre Grenon)