BA bosses forego bonuses

Jun 08 2004 by Brian Amble Print This Article

British Airways executives have decided to waive their six-figure bonuses despite the company's recovery, saying that accepting the payouts would be "inappropriate".

The airline's annual report yesterday revealed that BA's chief executive, Rod Eddington, has passed up his £175,000 performance bonus while finance director John Rishton and operations director Mike Street each turned down £100,000 bonuses.

BA spokesman said: "Given that we are trying to cut our employee costs by £300m in the next two years, and that we're seeking cost efficiencies throughout the business, our three executive directors felt it would be inappropriate to take their bonuses."

BA has shed more than 13,000 jobs over the past two years and is still looking to make coist savings.

Eddington's decision is the second time in three years that he has taken a voluntary reduction in his remuneration and comes despite a 72 per cent increase in profits to £230 million for the year.

Nevertheless, his total remuneration still grew by 5.6 per cent to £584,000. Meanwhile, BA ground staff have been offered a pay rise of only one per cent.

BA's position on bonuses has been contrasted with the attitude of Network Rail executives who last week received huge bonuses despite failing to meet punctuality targets.

Network Rail's five executive directors shared a bonus pot of some £400,000, with CEO John Armitt receiving £112,320 on top of his salary of £468,000.