United Airline Executives Given ‘Golden Parachutes’

Top officials of UAL Inc., parent of United Airlines, have been given lucrative employment contracts, known as “golden parachutes,” in case the company changes hands, a spokesman said today.

In a letter to shareholders, UAL directors said they awarded the special contracts to Richard Ferris, chairman and chief executive officer, and seven other officials because of “potentially disturbing circumstances arising from the possibility of change in control” of the company, said spokesman Matt Gonring.

UAL, which is changing its name to Allegis Corp. at the end of the month, has been the subject of strong takeover rumors since March.

The employment contracts give the UAL executives the right to receive their present salaries until April 30, 1992, or retirement pay, if that is earlier, Gonring said.

At the same time, directors made 37 other executives eligible for severance payments of up to three times their annual salaries if they are fired without cause or resign for good reason after a change in control of UAL, said Gonring.

In March, it was reported that New York real estate developer Donald Trump was interested in buying UAL. That was followed by a proposed buyout this month by United pilots and reports that the Pritzker family of Chicago was acquiring company stock.

Pilots of United Airlines have made a $4.5-billion offer for the carrier. Financial advisers for both sides have been meeting to discuss the proposal, first made public April 5.