Three
of British Airways’ top management have waived their annual bonuses after
deciding the rewards were not appropriate while the airline is undergoing a
massive cost-cutting drive.
The
company’s annual report, published yesterday, reveals that the executives –
including chief executive Rod Eddington – have given up bonuses worth about 30
per cent of their salaries.
Eddington
earned a salary package worth £558,000 last year, up from £553,000, and was
entitled to bonuses of about £168,000. Mike Street, the operations director,
and John Rishton, finance director, also agreed to forgo bonuses of about
£100,000 each.
The
three executives hit their bonus targets, as the airline reported a 70 per cent
rise in annual profits in the last financial year, and met its cost-cutting
goals. It achieved annualised savings last year of £869m against a target of
£650m, largely through the loss of 13,082 jobs.
But
British Airways said it is facing a tougher year owing to the rise in fuel
costs and more intense competition. It is seeking another £300m in savings.
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A
spokesman told The Times newspaper: “Given that we are looking for further cost
savings, it did not seem right that they [the executives] should get their bonuses.”
