BA boss Walsh gets £420,000 windfall

By This Is Money
Updated: 08:59 EDT, 1 April 2011

British Airways boss Willie Walsh has accepted a £420,000 bonus, his first in three years, after returning the group to profit and steering through the tie-up with Iberia.

Willie Walsh: Turned down annual bonuses for two years after BA was hit by losses

Walsh, now chief executive of the merged International Consolidated Airlines Group (IAG), picked up the cash and shares handout alongside a previously-revealed potential shares award worth more than £1m.

The bonuses took his total possible pay package for just nine months in 2010 to £2m when added to £551,000 in pro rata salary between March and December, according to BA's annual report.

The payout was based on the return to profit, a tie-up with American Airlines as well as Iberia, as well as improving industrial relations, the report showed.

Walsh turned down annual bonuses for two years after the carrier was hit by losses - slumping into the red by a record £401m in the year to March 2009.

He also worked for free during July 2009, giving up £61,000 in salary.

BA clawed its way out of the red with pre-tax profits of £157m for the nine months to December 31, against losses of £531m a year earlier.

The improved performance saw it announce a bonus for staff of a week's pay, at a minimum of £500 each.

Today's annual report shows that former BA chief financial officer Keith Williams - who replaced Mr Walsh as chief executive of BA - picked up a £208,000 annual bonus.

Mr Williams was also awarded more than 280,000 shares in September under the long-term incentive scheme, although the payout is based on performance targets and will not vest until 2013.

Mr Walsh saw his salary rise from £735,000 to £825,000 when he moved up to head IAG following the merger.

Mr Williams enjoyed a 43% rise from £440,000 to £630,000 a year after his promotion.