British Airways' under-fire chief executive Willie Walsh is to get a £35,000 sterling pay rise and has seen his bonus target changed to focus more on customer service, it emerged today.
Mr Walsh announced last month that he would forgo his 2007/08 bonus after the airline's Terminal 5 fiasco, despite unveiling record full-year profits.
However, the airline's annual report today shows that Mr Walsh will see his £700,000 basic salary increased to £735,000 next month, while he could also pick up a bigger bonus in this financial year worth up to 150% of salary.
But the bonus targets will be more dependent on customer service and satisfaction as the airline seeks to rebuild its reputation in the wake of the disastrous T5 opening.
Dozens of flights were delayed and cancelled and thousands of passengers separated from their bags in the troubled move to the new building in March.
The reputational woes overshadowed record pre-tax profits when the group unveiled figures last month. BA made pre-tax profits of £883m for the year to March 31, up 45% on the previous year, despite soaring oil costs, which saw the airline's fuel bill top £2 billion.
Mr Walsh came under pressure to quit in the wake of the T5 opening and made a series of public apologies. He said last month it would have been 'inappropriate' to accept a bonus award, given the problems.
This year he will have to achieve a 10% operating margin to secure a third of the possible £1.1m windfall, while a third is calculated on customer satisfaction and punctuality of planes - both of which are dependent on BA achieving a pre-tax profit.
