(Reuters) - International Airlines Group (IAG) (ICAG.L) said the pay of its chief executive, Willie Walsh, fell below that of the boss of its British Airways unit last year after IAG’s board decided not to award Walsh a bonus.
Walsh’s pay and benefits fell 16.6 percent to 1.1 million pounds for last year after IAG as a whole reported a steep loss, while the package for BA chief Keith Williams rose 40 percent to 1.4 million pounds due to the British carrier’s robust performance, according to IAG’s annual report.
IAG, parent of BA and Spain’s Iberia, last week reported a 2012 operating loss of 613 million euros, hit by restructuring costs and losses at Iberia. That compared with a 444 million-euros profit a year earlier.
BA, meanwhile, delivered an operating profit of 347 million euros, boosted by growth in business and first-class traffic, especially on trans-Atlantic routes.
IAG’s annual report, published on Wednesday, showed that BA’s Williams received 487,500 pounds in cash and shares last year after BA partially met profit targets, while Walsh did not receive a bonus.
“Whilst the performance of (Walsh) would in the opinion of the board have justified the payment of the annual bonus, after considering the financial performance of the group, the board has decided to exercise its discretion to withhold the payment of the annual incentive at this time,” IAG’s remuneration committee said in the report.
Walsh and Williams have proposed that their salaries be frozen in 2013 for the second year running.
Thousands of workers facing pay and job cuts at loss-making Iberia started a second wave of protests on Monday that could ground nearly 1,300 flights this week.
Reporting by Rhys Jones in London; Editing by Steve Orlofsky