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BA CEO Willie Walsh Turns Down $487K Bonus  
User currently offlinebjorn14 From Norway, joined Feb 2010, 3464 posts, RR: 2
Posted (4 years 3 months 1 week 5 days 17 hours ago) and read 4809 times:

In a PR battle BA CEO Willie Walsh declines his nearly half million dollar bonus as USA Today reports.

http://travel.usatoday.com/flights/p...eo-turns-down-487000-bonus/96445/1

PR stunt or is he genuinely concerned about BA's future?


"I want to know the voice of God the rest is just details" --A. Einstein
17 replies: All unread, jump to last
 
User currently offlineDocLightning From United States of America, joined Nov 2005, 19724 posts, RR: 58
Reply 1, posted (4 years 3 months 1 week 5 days 15 hours ago) and read 4708 times:

Quoting bjorn14 (Thread starter):

PR stunt or is he genuinely concerned about BA's future?

Both. Look, that money isn't going to make a difference to BA, but it does look really bad if he takes it.

He doesn't need it, and it's just going to be fodder for unions. I think it was a good move on his part. Both ethical AND shrewd.


User currently onlinedavid_itl From United Kingdom, joined Jun 2001, 7379 posts, RR: 13
Reply 2, posted (4 years 3 months 1 week 5 days 15 hours ago) and read 4698 times:
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It's getting to be a habit for him to refuse bonuses; he did it last year and I'm pretty sure the year before that. Shames certain other industries.

User currently offlineLHR380 From , joined Dec 1969, posts, RR:
Reply 3, posted (4 years 3 months 1 week 5 days 14 hours ago) and read 4540 times:

Quoting david_itl (Reply 2):
It's getting to be a habit for him to refuse bonuses; he did it last year and I'm pretty sure the year before that. Shames certain other industries.

As well as forgoing his pay for a month.


User currently offlinekellmark From United States of America, joined Dec 2000, 693 posts, RR: 8
Reply 4, posted (4 years 3 months 1 week 5 days 14 hours ago) and read 4477 times:

Good for him. It shows that he is leading by example, not one of those do as I say not as I do.

He should get plenty of loyalty from the non-striking employees and his customers.


User currently offlineWoof From , joined Dec 1969, posts, RR:
Reply 5, posted (4 years 3 months 1 week 5 days 14 hours ago) and read 4456 times:

I applaud his turning down of the bonus, but find myself asking why he was due a bonus in the first place?

Surely a bonus is based on positive performance against predeterminded targets. Given the current state of BA's finances, what did he actually do to earn the bonus in the first place, or was it just a gimme?

EDIT: spelling!

[Edited 2010-06-11 17:37:03]

User currently offlineFlighty From United States of America, joined Apr 2007, 8544 posts, RR: 2
Reply 6, posted (4 years 3 months 1 week 5 days 13 hours ago) and read 4407 times:

Quoting david_itl (Reply 2):
Shames certain other industries.

It's a farce. Executives should be paid appropriately and should accept their bonus. Not being allowed to accept your bonus is a perverse form of success-bashing. When, and why, do success and shame intersect? What does he have to be ashamed of? Was the bonus not properly awarded? If not, why was it done?

Meanwhile, collective bargaining units try to rob BA shareholders of the entire business. In my book, it is the BA rank and file union leaders who bring shame around the world.


User currently offlineAirNZ From , joined Dec 1969, posts, RR:
Reply 7, posted (4 years 3 months 1 week 4 days 23 hours ago) and read 3968 times:

Quoting Woof (Reply 5):
I applaud his turning down of the bonus, but find myself asking why he was due a bonus in the first place?

I would agree with you entirely and, let's be honest, he couldn't really accept it in all honesty!

Quoting Flighty (Reply 6):
It's a farce. Executives should be paid appropriately and should accept their bonus. Not being allowed to accept your bonus is a perverse form of success-bashing. When, and why, do success and shame intersect? What does he have to be ashamed of? Was the bonus not properly awarded? If not, why was it done?

Yes, a farce indeed, but certainly not in the way being implied/described above. Tell me, who's not 'allowing' him to accept it? To clarify this for me, are you thus saying that, upon telling thousands of employees they must take a pay cut, to accept a $487,000 bonus for oneself should be nothing to feel ashamed of? Indeed, if you are relating this to success, could you thus explain to me exactly what he has 'successfully' achieved in the past year to warrant any type of bonus? Correct me if I'm wrong, but he has just presided over BA's biggest loss since they were privatised so, if you feel that's being 'successful' could you give me an idea of what you feel 'unsuccessful' to be??


User currently offlinejetblueguy22 From United States of America, joined Nov 2007, 2798 posts, RR: 4
Reply 8, posted (4 years 3 months 1 week 4 days 23 hours ago) and read 3951 times:
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Quoting AirNZ (Reply 7):
To clarify this for me, are you thus saying that, upon telling thousands of employees they must take a pay cut, to accept a $487,000 bonus for oneself should be nothing to feel ashamed of?

I believe if he fulfilled everything required in his contract he deserves the bonus. I understand people are taking pay cuts and its very unfortunate but whether he takes the bonus or not people are still getting those pay cuts.
Blue



You push down on that yoke, the houses get bigger, you pull back on the yoke, the houses get bigger- Ken Foltz
User currently offlineEMAman From United Kingdom, joined exactly 6 years ago today! , 103 posts, RR: 0
Reply 9, posted (4 years 3 months 1 week 4 days 23 hours ago) and read 3876 times:

Quoting AirNZ (Reply 7):
Yes, a farce indeed, but certainly not in the way being implied/described above. Tell me, who's not 'allowing' him to accept it? To clarify this for me, are you thus saying that, upon telling thousands of employees they must take a pay cut, to accept a $487,000 bonus for oneself should be nothing to feel ashamed of? Indeed, if you are relating this to success, could you thus explain to me exactly what he has 'successfully' achieved in the past year to warrant any type of bonus? Correct me if I'm wrong, but he has just presided over BA's biggest loss since they were privatised so, if you feel that's being 'successful' could you give me an idea of what you feel 'unsuccessful' to be??


Willie is a good exec. He feels that he cannot accept the bonus because the press and moreso the unions will disect him relentlessly in their bid to win the cabin crew dispute. The unions will chew over every opportunity to make Walsh look like a selfish greedy exec in abid to get their own way. Probably because they realise that most people are simply not behind them.

Willie has not presided over BA's biggest loss due to his own failing. Willie is stuck with a legacy of high costs of operation, that keep his cost base far higher than his competitors - preventing him from being able to compete. The execs that tied BA into these costs are those of the past. The unions are now preventing him from being able to reduce his cost base. Its ok saying that BA lost £500m and its the chief execs fault - remember that same chief exec made £1b profit 3 years ago - BA are desperately trying to reduce costs to compete and are being blocked at every turn. I would like to see some of these cabin crew go and ask ryanair for a job when there is nothing left of BA and see that £29k average salary go to £12k.

The unions are doing a sterling job again; doing to BA what they did to the once great british manufacturing industry; wrecking it wrecking it and wrecking it. The strikes are a disproportionate, inappropriate, unreasonable and short sighted approach to fending off the necessary.


User currently offlineLHR380 From , joined Dec 1969, posts, RR:
Reply 10, posted (4 years 3 months 1 week 4 days 23 hours ago) and read 3847 times:

Quoting EMAman (Reply 9):
Willie has not presided over BA's biggest loss due to his own failing. Willie is stuck with a legacy of high costs of operation, that keep his cost base far higher than his competitors - preventing him from being able to compete. The execs that tied BA into these costs are those of the past. The unions are now preventing him from being able to reduce his cost base. Its ok saying that BA lost £500m and its the chief execs fault - remember that same chief exec made £1b profit 3 years ago - BA are desperately trying to reduce costs to compete and are being blocked at every turn. I would like to see some of these cabin crew go and ask ryanair for a job when there is nothing left of BA and see that £29k average salary go to £12k.

Great quote.

People are trying to blame WW for everything going wrong in BA when as you say, a lot of it is from previous CEO's.

And of course the current economic climate does not help things.


User currently offlinetim222 From United Kingdom, joined Sep 2009, 87 posts, RR: 0
Reply 11, posted (4 years 3 months 1 week 4 days 22 hours ago) and read 3765 times:

Quoting LHR380 (Reply 10):
I would like to see some of these cabin crew go and ask ryanair for a job when there is nothing left of BA and see that £29k average salary go to £12k

i'd love to earn £29k a year... I am worldwide crew and didn't take home anywhere near that last year


User currently offlineLHR380 From , joined Dec 1969, posts, RR:
Reply 12, posted (4 years 3 months 1 week 4 days 22 hours ago) and read 3755 times:

Quoting tim222 (Reply 11):
i'd love to earn £29k a year... I am worldwide crew and didn't take home anywhere near that last year

I did not write that, I quoted it.


User currently offlineEPA001 From Netherlands, joined Sep 2006, 4739 posts, RR: 39
Reply 13, posted (4 years 3 months 1 week 4 days 22 hours ago) and read 3739 times:
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Quoting LHR380 (Reply 10):
People are trying to blame WW for everything going wrong in BA when as you say, a lot of it is from previous CEO's.

And of course the current economic climate does not help things.


I guess WW has done a lot of good for BA, and to have turned down a bonus several times is a very good gesture, certainly in these times. BA and her management still have a lot of work to do to make the alliance BA/IB a strong competitor in the fiercely fought over market share in aviation. But the LH-group, the AF/KL-group and the BA/IB group will be the dominant alliances from and inside Europe. But they have to keep a close watch at the Middle-East carriers.  .


User currently offlineEUROBUS From Spain, joined Nov 2004, 313 posts, RR: 0
Reply 14, posted (4 years 3 months 1 week 4 days 19 hours ago) and read 3441 times:

Wow, I take my hat of to Wllie Walsh!

Yes,... it is a gesture, considering it will make a very small difference for BA but a big difference to his bank account. But gestures like this one is what moves people!!

Well done!!

...I wish the politicians here in Spain would learn from him.   



Who says airports are boring places?!
User currently offlineJacobin777 From United States of America, joined Sep 2004, 14968 posts, RR: 59
Reply 15, posted (4 years 3 months 1 week 4 days 18 hours ago) and read 3045 times:

Quoting AirNZ (Reply 7):

Yes, a farce indeed, but certainly not in the way being implied/described above. Tell me, who's not 'allowing' him to accept it? To clarify this for me, are you thus saying that, upon telling thousands of employees they must take a pay cut, to accept a $487,000 bonus for oneself should be nothing to feel ashamed of? Indeed, if you are relating this to success, could you thus explain to me exactly what he has 'successfully' achieved in the past year to warrant any type of bonus? Correct me if I'm wrong, but he has just presided over BA's biggest loss since they were privatised so, if you feel that's being 'successful' could you give me an idea of what you feel 'unsuccessful' to be??
Quoting LHR380 (Reply 10):
People are trying to blame WW for everything going wrong in BA when as you say, a lot of it is from previous CEO's.

  ......I also think Sir Rod Eddington did a good job with BA-the problem BA has had is multi-faceted.

1)Multiple "hits" on its main revenue routes (TATL) with 9/11, multiple recessions, etc.
2)Lots of competition on Indian routes-hurting yields.
3)Carriers such as EK coming in and taking a lot of pax
4)global slowdown-where yields/revenues on F/J decreased substantially.
5)ever-rising costs.
6)Open skies with the U.S.A.

I'm surprised BA exists at all.....



"Up the Irons!"
User currently offlineFlighty From United States of America, joined Apr 2007, 8544 posts, RR: 2
Reply 16, posted (4 years 3 months 1 week 4 days 17 hours ago) and read 2862 times:

Quoting AirNZ (Reply 7):
could you thus explain to me exactly what he has 'successfully' achieved in the past year to warrant any type of bonus? Correct me if I'm wrong, but he has just presided over BA's biggest loss since they were privatised so, if you feel that's being 'successful' could you give me an idea of what you feel 'unsuccessful' to be??

So now you are saying that BA shareholders don't know how to compensate their executives. They compensate too highly. Well, why do they do that? I just object to the moral framework. This is business, it's not about that.

If Walsh is the best person for the job then they should pay him. If not then he should be fired immediately. When BA loses money sitting on such a good hub like LHR it suggests to me that maybe they need to lay off 1,000s of employees and re-orient their business. If unions disagree, naturally losses will occur. How does it reflect on Walsh's performance, I can't say for sure.

But, in general I would suggest shareholders should control their own company, and we don't need to manufacture more drama than that.


User currently offlineBraybuddy From Ireland, joined Aug 2004, 5733 posts, RR: 31
Reply 17, posted (4 years 3 months 1 week 4 days 17 hours ago) and read 2684 times:

While Wille Walsh has a difficult job (and he was right to turn down his bonus in the present climate), I sometimes wonder what airlines are thinking of in 2010: last week I searched for flights to Tunisia, and got a €700+ return fare with BA (DUB-TUN). I changed plans slightly, and decided to travel out to TUN and back from MIR. BA were looking for €1,100+ for the SINGLE economy fare to TUN. Same day, same flight as the outward return one, only €400+ dearer. Crazy, absolutely crazy.

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