Virgin Australia’s flight attendants aren’t the only ones rolling around in extra dough – CEO John Borghetti just received a very generous bonus for all his hard work last year.
As the airline slowly creeps back into the black, Virgin’s annual report this week revealed Borghetti earned some $2.84 million during the 2014/15 financial year – up from $2.776 million the prior 12 months.
The figure also included a short term incentive payment of $1 million, which was in recognition of Virgin’s slow return to profitability.
Despite receiving quite a large pay rise and reward, Borghetti’s overall figure is well below his counterpart over at Qantas, Alan Joyce.
Both men earned around the same amount of money during the 2013/14 year of about $4 million.
However, while Borghetti’s remuneration remained roughly the same, Joyce’s shot up to $12 million. Joyce’s trippled pay packet came after delivering profits of just under $1 billion during the 2014/15 financial year. #StillWishIWasHim
Meanwhile, in the report Virgin said Borghetti’s earnings came after successfully he successfully reduced the carrier’s losses during the 2014/15 year by $262 million on the previous year.
“By the end of the 2015 financial year, the Group had significantly reduced unit costs, increased Group yield, and strengthened its balance sheet.”
Virgin Australia
The report continued, saying during the year Borghetti had also lead the full acquisition of Tigerair Australia and delivered a major turnaround in Virgin’s financial and operating performance.
Borghetti expects the airline to return to profitability in 2016, along with its budget airline Tigerair.
“Over the next two years, the Virgin Australia group will continue to focus on the Virgin Vision 2017 priorities.”
John Borghetti, Virgin Australia CEO
This includes capatilising on growth opportunities, driving yield enhancement, implementing a new cost program, optimising the balance sheet, setting a new standard in customer experience and developing staff.