BA boss Walsh to see salary soar after merger
Published 28/10/2010 | 05:00
BRITISH Airways chief Willie Walsh will enjoy a substantial pay and pension increase after the merger of the airline with Iberia.
The details of the deal were included in documents released yesterday.
The BA chief executive's basic salary will increase by 12pc to £825,000 (€845,000). His pension contribution will more than double from 12pc of salary to 25pc. And his maximum annual bonus, based on the airline's performance, will double from 100pc of salary to 200pc -- worth £1.6m (€1.83m).
Half of his bonus will be paid in cash and half in shares that can be redeemed only after three years if Mr Walsh is still at the company.
Mr Walsh is also eligible for a performance share award, which will be based on BA's share price relative to its peers.
Theoretically, he could get a remuneration package worth £4.12m (€4.7m) plus a £412,500 (€471,000) pension contribution.
BA shareholders will be asked to vote on the proposed merger at an emergency general meeting on November 29. If they accept the deal, the new company will begin operations from January 24 with BA shareholders owning 56pc of the combined entity.
The two airlines expect their merger to create Europe's second-biggest airline by market value after Lufthansa.
BA said that it expected the merger to be completed on January 21, with shares listed on the London Stock Exchange three days later.