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......and now it's Borghettis turn!
In a year in which Virgin recorded the largest loss in its 14-year history, Mr Borghetti's take-home package totalled almost $2.78 million, which included base pay of $1.67 million and a short-term bonus of $744,000. It compares with a total package of $2.66 million for the chief executive a year earlier. His take home pay this year was higher than that for Qantas chief executive Alan Joyce, who pocketed just over $2 million. Read more: Virgin Australia again under fire for 'very substantial' pay package for CEO John Borghetti |
The rebuke will be symbolic because Virgin's four largest shareholders – Singapore Airlines, Etihad, Air New Zealand and British businessman Richard Branson – will probably vote in favour of the resolutions. Their combined holdings amount to about 80 per cent of the airline's share register. Read more: Virgin Australia again under fire for 'very substantial' pay package for CEO John Borghetti Don't be surprised if they decide to dilute the remaining 20% of shares further and de-register off the ASX and take the company dark.... |
Bonus payed for by Etihad, SQ, NZ.
What a hero. |
I really wonder why these people (any high profile CEO) think they are worth the money they are being paid. I mean, do they really believe they are worth that much? maybe 20 or 30 times the amount that some of the people that ACTUALLY do the work and make the business run?
It would be really good, one day, to talk to one of these guys, or girls, and try and understand the why they think they are worth so much more than say, me. Guess it is unlikely to happen though, mores the pitty. |
The problem is they don't think like everyone else. They align with the Boards and figure they get to share the spoils of war and if there are no spoils then they spin it as future earnings or what might have been worse if they were not there.
The bonus concept is flawed because in my view if they do a good job they get to keep the gig. If they don't then they get booted.That is not the way Boards think and there are many examples of bonuses being paid when they were simply not justified. Re JB I reckon it is worth the entertainment value because he is actually running a company strategically and I like watching him stick it up the little fella any chance he can and that my friends is karma. Lets hope his shareholders with deep pockets stick around because a few million in CEO pay is chicken feed for a big share of the market which is their end game. Packer once said you only get one Alan Bond in your life and I reckon these shareholders cannot believe their luck in finding the 21st Century Alan and do everything they can to hasten his fall and destruction. |
but eventually you better make money! (This is slightly tongue in cheek - I'm sure he wants to make money, but it's not the end of the world if he doesn't, as with all CEO's) |
It's kind of sad that the ceo's of both majors made more money than their respective companies.
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This is how it's done
Japanese airline president and CEO "shares the pain" The airline industry is going through rough times, but Japan Airlines is still managing to fly high, winning the "Airline Turnaround Award" from the Center for Asia Pacific Aviation. JAL's chief executive is largely responsible for maneuvering his company through aggressive reforms as he takes "sharing the pain" to a whole new level. After his morning commute on the city bus, Haruka Nishimatsu heads into the office and gets busy at his desk with the rest of his Japan Airlines co-workers. At lunch, he lines up in the cafeteria and hopes his meal doesn't get cold as he waits to pay. It's not exactly the glamourous life you'd expect from the CEO of one of the world's top ten international airlines. Perhaps that's why, then JAL slashed jobs and asked older employees to retire early, Nishimatsu cut every single one of this corporate perks. Then for three years running he slashed his own pay. He made about $90,000 last year, less than what his pilots earn. Nishimatsu says, "The employees who took early retirement are the same generation and age as me. I thought I should share the pain with them. So I changed my salary." Nishimatsu shrugs it off, saying it's not a big deal. But that certainly stands in contrast to CEOs in the United States being grilled by Congress over perceived corporate excesses and balooning salaries and bonuses. When Nishimatsu was told the top-paid U.S. CEOs make tens of millions, in some cases nearly $200 million a year, he expressed surprise, and when he was asked whether he could imagine making that much, he said, "Noooo." In Japan, says Nishimatsu, there's less of a pay gap between the top and the bottom: "We in Japan learned during the bubble economy that businesses who pursue money first fail. The business world has lost sight of this basic tenet of business ethics." He says his airline has a long, difficult recovery ahead. As far as his pay, he's dug into his savings like many other people. "The air conditioning broke, and the water heater, and the car. My wife is still telling me, this is all your fault." But relating to what his employees and his passengers are feeling and living in the global slowdown might be the ticket to his own airline's survival. |
It's kind of sad that the ceo's of both majors made more money than their respective companies. |
So what? Did you expect my shareholders to want me to work for free? Its not my fault that management are inept. Its not my fault that the airline made a loss, nor is it up to me to provide solutions.
Your post, while accurate, is offensive and facile. |
The point here is the massive salaries enjoyed by management, not confined to Borghetti alone, some of his senior managers scored pay rises recently of 200-400000 thousand dollars!!
And they still get these obscene salaries regardless of how they perform!! Pilot stuffes up.....................Airline will hang them out to dry!! Indeed it is refreshing to see the example of the JAL CEO, his airline is in trouble, there needs to be some cuts, so he leads from the front! Mind you its not like his counterpart at ANA is exactly rolling in it compared to Aussie Airline CEOs, i believe the ANA CEO is on around 500,000USD, |
What doesn't seem to be commented too often is the fact that Virgin's losses were proportionally larger than Qantas.
You'd have to question if the investments being made, will / are, adequately attracting the yield premium to fund this significant capex. |
Boe787 seeing as there is a pay freeze for most people I would be surprised if your info is correct.
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Dehavillans driver,
I dont know of any pay freeze at Virgin, unlike Qantas? The salary increases for upper management at Virgin were reported in the media: Cookies must be enabled. | The Australian Cheers |
Would like to give some food for thought.
Borghetti's days are numbered at Virgin, the consortium of owners "Etihad, SQ, AirNz" each having their CEO's on the board, will see to that. So he is out to be cashed up for the crunch. I may be wrong but don't be surprised if Chris call me 'Christopher' doesn't take over the leadership of Virgin, after the turnaround he has so victoriously preformed at the kiwi airline. If not directly he will have a massive input. All I can say to him, is the airline business is not soap powder in a factory and what I have heard that's his management style. He handles touchy operational situations like a product recall. No one in head office is game enough to challenge him. Virgin staff be aware, very aware. Darth is on his way. |
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