Virgin chiefs receive pay rises despite job cuts August 2009
Posted date: 3 August 2009
Virgin Atlantic has awarded its senior managers a 40 per cent pay increase in 2008, despite its announcement of making 1,200 redundancies.
Staff have accused Chief Executive Steve Ridgway of a lack of moral leadership after his salary rose from £500,000 to £700,000. Meanwhile, the combined pay of the top three directors rose from £1.4 million to £2 million, according to company accounts.
The airline’s cabin crew received a 4.6 per cent increase last year but all staff have had their pay frozen this year.
A Virgin Atlantic spokesman said that the directors’ pay rises were based on a surge in profits during 2007–08 because the company defers performance bonuses by a year.
In May, the airline said that its 2008–09 profits had nearly doubled to £68.4 million, which can mean that directors could be in line for a further pay increase this year.
“The rises were paid last year and have nothing to do with what is happening this year,” said the spokesman.
He added that this year’s environment would be more difficult and all staff, including directors and non-executive directors, would be asked to make sacrifices.
- Issue:
- August 2009
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