Virgin Australia chief executive John Borghetti may not be making as much money as his counterpart at Qantas, Alan Joyce, but he earned AUD 2.84 million in 2014-15, up from AUD 2.776 million the previous year, the annual report for the group shows.
Qantas chief executive Alan Joyce has seen his remuneration soar, nearly trebling to reach AUD 12 million.
As the Sydney Morning Herald pointed out yesterday, both men had received total pay packages of about AUD 4 million in the 2013-14 financial year. Their changing fortunes since “can be linked to the share price and financial performance of the respective airlines”.
The Qantas Group turned around spectacularly to post a AUD 557 million profit.
As a reward for the impressive improvement, Qantas paid Joyce AUD 11.884 million.
The Australian noted that Borghetti’s sum included a “short term incentive” payment of AUD 1 million in recognition of the positive trajectory of Virgin Australia. The airline is not yet profitable but it is turning around.
“By the end of the 2015 financial year, the Group had significantly reduced unit costs, increased Group yield, and strengthened its balance sheet,” the report said.
The Virgin Group reported an Underlying Loss Before Tax of AUD 49.0 million for the 2015 financial year, an improvement of AUD 162.7 million on the 2014 financial year.
Taking into account 100% of Tigerair Australia performance on a like-for-like basis, the 2015 financial year underlying performance represents a AUD 213 million improvement over the previous corresponding year.
The Virgin Group’s statutory loss after tax for the 2015 financial year was AUD 93.8 million, up AUD 260 million over the prior corresponding period.
Total Virgin Group revenue and income increased 10.3% to AUD 4749.2 million compared to the 2014 financial year, inclusive of AUD 284.1 million of Tigerair Australia revenue since 17 October 2014.
Edited by William Sykes