BA CEO To Get GBP£4 Mln Pay Deal

October 29, 2010

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British Airways chief executive Willie Walsh will receive a substantial pay and pension increase if the airline's merger with Spanish carrier Iberia goes ahead.

Walsh's basic salary will rise by 12 percent to GBP£825,000 (USD$1.3 million), according to a report in The Times newspaper. His pension contributions will more than double from 12 percent of salary to 25 percent. And his annual bonus will double from 100 percent of salary to 200 percent –- the equivalent of GBP£1.6 million – with half paid in cash and half in share options that can be redeemed if Walsh is still with the company in three years.

Under the deal he is also eligible for a performance shares award which will be based on the new group IAG's share price relative to its peers.

Taken together this means that could receive a total pay and benefits package of GBP£4.12 million plus a pension contribution of GBP£412,000, the paper reported.

(Reuters)