Bonus for ex-BA boss after profits

Willie Walsh accepted his first annual bonus in three years as the boss of British Airways after the airline handed him a £440,000 windfall last year.

Mr Walsh picked up the cash and shares handout alongside a previously-revealed potential shares award worth more than £1 million under the group’s long-term incentive scheme.

The bonuses took his total possible pay package for just nine months in 2010 to £2 million when added to £551,000 in pro rata salary between March and December, according to BA’s annual report.

BA said his annual bonus came after he returned the group to profit last year and secured its merger with Spanish airline Iberia, which has since seen the creation of International Consolidated Airlines Group (IAG).

The bonus was also based on his success in seeing through the transatlantic tie-up with American Airlines and Iberia, as well as improving industrial relations, the report showed.

Mr Walsh, who is now chief executive of IAG, turned down annual bonuses for two years after the carrier was hit by losses – slumping into the red by a record £401 million in the year to March 2009.

He also worked for free during July 2009, giving up £61,000 in salary.

A BA spokesman said: “The bonus was based on the airline’s financial results as it returned to profitability and made structural changes to its cost base and operational performance.

“Willie also led the company in finalising the merger with Iberia and getting approval for the transatlantic joint business with American Airlines and Iberia.

“Everyone employed by BA received a bonus for the company’s performance last year.”