my oleo is extended
7th Oct 2009, 09:39
Nice work :
Can anybody please explain how a CEO can,with conscience, earn a multi million dollar package while the company posts mega losses, share value is downgraded( original listing at around $2.65,now around $0.38 AUD) and the list of incompetencies goes forever ? Its not an argument here, just a simple question,thats all ?
Virgin boss takes $500,000 haircut
Article from: The Australian (http://www.theaustralian.news.com.au/)
VIRGIN Blue may avoid the executive pay debate engulfing Qantas because its chief executive's package fell almost 20 per cent last financial year.
Brett Godfrey's 2008-09 pay package fell from $2.36 million to $1.89m, with his base pay staying the same at $826,000 but his cash bonus dropping from $471,000 to $281,00 and the value of share-based payments falling from $962,000 to $683,000. He also had a $100,000 superannuation payment.
The airline's annual report shows other senior executives also took a haircut as the airline's profits were pummelled by the global financial crisis and the cost of launching V Australia.
This included chief financial officer Keith Neate, whose package fell from $1.07m to $833,000, and V Australia boss Scott Swift, who saw his remuneration fall from $745,000 to $568,000.
Departing executive Stefan Pichler earned $778,000 in 2008-09 compared with $1.36m the previous year.
Virgin Blue recorded a net loss after tax of $160m in 2008-09 but its shares and those of rival Qantas have started climbing amid suggestions traffic and fares might improve.
Mr Godfrey told reporters attending Virgin Blue's ninth birthday celebrations on Wednesday that things were looking up.
"The market is starting to turn, and we'll be a major beneficiary," he said. "Assuming the momentum we're seeing continues to build, I think we'll see at Christmas time fares start to return, maybe not to prior levels."
Mr Godfrey has expressed confidence on several recent occasions that Virgin Blue is well placed to take advantage of a turn in the economy and this was reiterated in the annual report by chairman Neil Chatfield.
"We are satisfied that through a series of early actions and structural and strategic response to the GFC, the Virgin Blue Airlines Group is now in a good position to take advantage of market and economic recovery," Mr Chatfield said. He also expressed confidence in V Australia's potential despite its "less than optimal launch timing".
"Our revised fleet and network strategy for the new airline, including new routes to Phuket and Johannesburg and Melbourne-Los Angeles, combined with our proposed Virgin Blue/Delta Air Lines joint venture, will further improve the airline's opportunities," he said.
The annual report sticks with the previous outlook, with the airline expected to break even in financial 2010 and that it will remain cashflow positive if the current market conditions are maintained. "Further asset realisation is planned for the current fiscal year and (this) -- together with a forecast net cash inflow for fiscal 2010 -- will see the cash position of the group improve over the next year," it said.
"With funding in place for the majority of the forecast $440m in capital expenditure for fiscal year 2010, this puts Virgin Blue in a strong position to move quickly when the markets recover and will enable the business to leverage existing under-utilised operating capacity."
Can anybody please explain how a CEO can,with conscience, earn a multi million dollar package while the company posts mega losses, share value is downgraded( original listing at around $2.65,now around $0.38 AUD) and the list of incompetencies goes forever ? Its not an argument here, just a simple question,thats all ?
Virgin boss takes $500,000 haircut
Article from: The Australian (http://www.theaustralian.news.com.au/)
VIRGIN Blue may avoid the executive pay debate engulfing Qantas because its chief executive's package fell almost 20 per cent last financial year.
Brett Godfrey's 2008-09 pay package fell from $2.36 million to $1.89m, with his base pay staying the same at $826,000 but his cash bonus dropping from $471,000 to $281,00 and the value of share-based payments falling from $962,000 to $683,000. He also had a $100,000 superannuation payment.
The airline's annual report shows other senior executives also took a haircut as the airline's profits were pummelled by the global financial crisis and the cost of launching V Australia.
This included chief financial officer Keith Neate, whose package fell from $1.07m to $833,000, and V Australia boss Scott Swift, who saw his remuneration fall from $745,000 to $568,000.
Departing executive Stefan Pichler earned $778,000 in 2008-09 compared with $1.36m the previous year.
Virgin Blue recorded a net loss after tax of $160m in 2008-09 but its shares and those of rival Qantas have started climbing amid suggestions traffic and fares might improve.
Mr Godfrey told reporters attending Virgin Blue's ninth birthday celebrations on Wednesday that things were looking up.
"The market is starting to turn, and we'll be a major beneficiary," he said. "Assuming the momentum we're seeing continues to build, I think we'll see at Christmas time fares start to return, maybe not to prior levels."
Mr Godfrey has expressed confidence on several recent occasions that Virgin Blue is well placed to take advantage of a turn in the economy and this was reiterated in the annual report by chairman Neil Chatfield.
"We are satisfied that through a series of early actions and structural and strategic response to the GFC, the Virgin Blue Airlines Group is now in a good position to take advantage of market and economic recovery," Mr Chatfield said. He also expressed confidence in V Australia's potential despite its "less than optimal launch timing".
"Our revised fleet and network strategy for the new airline, including new routes to Phuket and Johannesburg and Melbourne-Los Angeles, combined with our proposed Virgin Blue/Delta Air Lines joint venture, will further improve the airline's opportunities," he said.
The annual report sticks with the previous outlook, with the airline expected to break even in financial 2010 and that it will remain cashflow positive if the current market conditions are maintained. "Further asset realisation is planned for the current fiscal year and (this) -- together with a forecast net cash inflow for fiscal 2010 -- will see the cash position of the group improve over the next year," it said.
"With funding in place for the majority of the forecast $440m in capital expenditure for fiscal year 2010, this puts Virgin Blue in a strong position to move quickly when the markets recover and will enable the business to leverage existing under-utilised operating capacity."