The bonus pay came at a time when United was moving to cut employees' pay and benefits and eliminate defined-benefit pensions as it seeks financing to emerge from Chapter 11 bankruptcy later this year.
United spokeswoman Jean Medina said the incentive pay reflects the airline having met operating targets last year, as measured by its on-time record and customer satisfaction surveys, and has nothing to do with the labor cutbacks.
United's senior executives put a large percentage of their pay at risk via the incentive program based on the request of labor unions, Medina said, noting that nearly 97 percent of $92.5 million in 2004 incentive pay went to employees below the vice-president level.
Tilton remains among the lowest-paid of airline CEOs, she said, with an annual salary that was reduced to $605,625 on Jan. 1. His salary for last year was $756,832, down from $950,000 when he was hired in September 2002.
''When you consider total compensation, we believe he is below almost every other peer,'' Medina said.
In 2003, Tilton had a similar salary of $745,749 but no incentive pay.
Tilton's bonus pay wasn't the largest at the airline last year, the filing showed. John Tague, executive vice president of marketing, sales and revenue, earned $445,000 in bonus pay on top of his $541,000 salary - part of it a retention bonus stipulated in his 2003 contract, Medina said.
Three other senior executives - Doug Hacker, the executive vice president for strategy; Chief Financial Officer Jake Brace and Chief Operating Officer Pete McDonald - made about $501,000 combined in bonus pay in 2004. Brace also received an 11 percent salary boost, while McDonald's pay increased by 19 percent.
''It's unconscionable that these executives would take raises for themselves when they've demanded a second round of wage and benefit cuts from their employees,'' said Sara Nelson Dela Cruz, a spokeswoman for United's flight attendants union.
Medina said those raises were given because of promotions or increased responsibilities. Those executives also saw their salaries reduced on Jan. 1.
Union representatives for United's machinists, mechanics and pilots said Wednesday they had not yet reviewed the filing and had no comment.
The SEC filing also showed that about 125 current and former senior managers took a hit to their pensions last week when the company terminated its supplemental retirement plan as part of efforts to further reduce costs. United had set up the plan to provide benefits to executives whose salaries exceed the Internal Revenue Service's caps for traditional retirement benefits.
Tilton still has a retirement benefit with special protection from creditors in the bankruptcy. A $4.5 million trust was set up for him when he was hired in 2002, compensating for projected retirement benefits he forfeited by leaving ChevronTexaco Corp., United has said in regulatory filings.
