LONDON- British Airways (BA) has made headlines as its Chief Executive Officer (CEO), Sean Doyle, earned a £2.1 million ($2.8 million) bonus linked to a long-term share incentive. This development comes despite ongoing challenges in customer service and compensation disputes.
The bonus was awarded following the sale of 650,000 shares in BA’s parent company, International Airlines Group (IAG), which is based in Madrid. According to PYOK, this move ties back to a 2022 performance-linked incentive scheme.
British Airways CEO Sean Doyle | Photo: British AirwaysBritish Airways CEO Bonus
Sean Doyle’s $2.8 million bonus stems from selling 650,000 IAG Group shares at £3.30 each on May 22, linked to a 2022 long-term incentive plan awarded mostly in shares.
His base salary in 2023 was £670,000, but with bonuses and incentives, his total remuneration for 2022-23 reached £1.5 million.
This payout reflects IAG’s strategy to tie executive rewards to shareholder value, yet it coincides with uneven airline performance.
British Airways has improved operationally, ranking as the 7th most punctual global carrier in April, according to Cirium.
However, customer satisfaction lags, with IAG’s Net Promoter Score (NPS) hitting 22.6 in 2024 against a target of 28.6.
This score exceeds Bain & Company’s “good” threshold of 0 but trails Lufthansa’s 35 from 2023, highlighting a gap in passenger experience.
IAG ties part of its executive incentives, including Doyle’s, to customer satisfaction via the Net Promoter Score (NPS), which measures passengers’ likelihood to recommend the airline.
In 2024, IAG aimed for an NPS of 28.6 across its brands, British Airways (BA), Iberia (IB), Aer Lingus (EI), and Vueling (VY), but achieved only 22.6. Scores above 0 are good, 50 excellent, and 80 world-class, per Bain & Company.
British Airways’ service issues persist, with £1.5 million paid in compensation from October to December 2024.
An independent arbitration service reviewed 3,199 complaints, resolving 2,833 cases, 89% in favor of passengers, overturning the airline’s initial refusals for delays, cancellations, and lost luggage.
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Photo- Krzysztof Kaczala, Wikimedia CommonsOperational Improvements and Ongoing Challenges
British Airways has demonstrated some success in operational performance. Data from aviation analytics firm Cirium ranked the airline as the 7th most on-time global carrier and the 8th most punctual airline in Europe as of April 2024.
Most of these improvements are visible at its primary hub, London Heathrow (LHR), where on-time departures have become more consistent.
However, customer experience remains a critical concern. Between October and December 2024, British Airways paid out nearly £1.5 million ($1.98 million) in compensation claims after initially denying them.
An independent arbitration service received 3,199 complaints in that quarter alone, with 2,833 cases resolved.
Strikingly, 89% of decisions favored passengers, challenging the airline’s prior refusal to pay.
These issues highlight a disconnect between operational metrics and customer facing realities. Delays, cancellations, and baggage issues continue to tarnish the airline’s brand reputation.
Photo: Aero Icarus | FlickrLeadership Pay
In 2024, IAG disclosed a stark gender pay gap among its senior leadership. Male board members and management committee personnel earned an average of over €745,000 annually.
In contrast, female executives in equivalent positions earned only €151,000. The group attributed the disparity to the absence of women in CEO and chairman roles, further emphasizing the need for structural changes in leadership equity.
Despite facing criticism for service quality and compensation handling, British Airways under Doyle is navigating a delicate transformation, balancing shareholder expectations with the demand for a better passenger experience.
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The post British Airways CEO Gets $2.8 Million Bonus appeared first on Aviation A2Z.
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