United Continental Holdings Inc. has named Brett J. Hart, the executive vice president and general counsel of the company, to be active CEO of United Airlines, according to a press release issued by United Airlines.
Oscar Munoz, the current president and CEO of United Airlines, will be taking a medical leave, following his hospitalization due to a heart attack on October 15, 2015.
United Airlines said in the press release that it is still too soon to know the course of treatment and the timing of Munoz's recovery.
Hart's appointment is effective immediately.
United Airlines adds in the press release that Hart will be working closely with Henry L. Meyer III, the non-executive chairman of the board, and the experienced executive team of United to run the company on Munoz's absence.
Hart, aside from being the general counsel of United, is also responsible for government and regulatory affairs, corporate real estate, customer experience, corporate security, community affairs, contact centers and food services.
Meyer said in the press release that he is confident in Hart's ability to run the company and continue ti implement its strategies.
"Brett has taken on increasing responsibility beyond general counsel over the last few years in the operations and customer facing areas of the company," he said. "I am confident in his ability to continue to implement the company's strategy and Oscar's mission of bringing United's people together around the shared purpose of becoming the best airline for our customers and employees."
The company took a while to name an interim CEO as it was contemplating on appointing an interim or looking for a new one to replace Munoz, according to Bloomberg.
United's board discussed the possible course of action they could take last Friday, but was stymied by the lack of information regarding Munoz's condition.
The Wall Street Journal adds that Munoz's illness has once again raised the issue on how and when the company's board tell shareholders about the CEO's illness.
Securities laws require that publicly traded companies disclose material information that might affect an investors' decision to buy or sells shares.
However, directors get to decide what information is considered "material," the term that requires it to disclose information, according to The Wall Street Journal.
Companies don't usually disclose health problems of their CEOs until the condition is in a critical stage.
United said that their board of directors remains active in preparing for all the possible outcomes with regards to the company's leadership structure, according to the press release.
