Spanish airline Iberia's dire performance cost International Airlines Group boss Willie Walsh his annual bonus today.
IAG owns British Airways, which made an operating profit of €347 million (£299 million) last year. But this was more than wiped out by Iberia’s €351 million losses as the group crashed €997 million into the red.
Walsh picked up a total of £1.08 million in salary and benefits last year, £215,000 down on 2011. His basic salary was frozen at £825,000 for the second year in a row. The firm’s annual report said the chief executive would have been entitled to a bonus this year, but the board “decided to exercise its discretion to withhold the payment” given the poor financial performance of the group.
Walsh — said to be “relaxed” about the decision — could pick up a maximum £1.65 million in shares over the next three years under a long-term incentive plan if he manages to revive the group’s fortunes. The previous three-year incentive scheme failed to pay out.
He also took home less than British Airways chief executive Keith Williams, whose £1.36 million pay included a a £488,000 bonus in cash and deferred shares. In contrast, Iberia chief executive Rafael Sánchez-Lozano received no bonus and took a 25 per cent pay cut last December.