Continental Air Execs Sign 5-Year Contracts

Continental Airlines Inc.’s five highest-ranking executives signed five-year employment agreements aimed at keeping the management team in place as the industry faces consolidation. The new contracts for Continental Chairman and Chief Executive Gordon Bethune and President Greg Brenneman would add about two years to the previous contracts, which were set to expire in November 2003. The company wouldn’t comment on the reason for the new contracts for Bethune and Brenneman. United Airlines parent UAL Corp.’s agreement to buy US Airways Group Inc. has set off a wave of merger discussions among U.S. airlines in the last two months. Analysts have said Continental could be an acquisition candidate. The three other executives who signed new contracts are Larry Kellner, the company’s chief financial officer; Jeff Smisek, executive vice president and general counsel; and C.D. McLean, executive vice president of operations. Continental shares rose 50 cents to close at $52.75 on the NYSE. *

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