BA staff received 2.7% pay increase in 2014

British Airways-Airplane

British Airways non-management staff received an average 2.7% increase in pay during 2014.

The details were outlined in its parent company International Airlines Group’s (IAG) 2014 annual report.

The airline group, which is also the parent company to Iberia and Vueling, also highlighted a varied rise in salaries across IAG, ranging from an average of 2.5% to 3% for its 41,000 employees.

This is in comparison to a 3% increase to the chief executive officer of IAG Willie Walsh’s package. His salary and other benefits amounted to a package worth £6.4 million, up from almost £5 million in 2013.

The report also highlighted a 10.4% increase in productivity among employees.

Payouts through the organisation’s annual incentive scheme varied across the group.

Employees also receive life insurance, personal travel, a company car (where applicable), fuel, occasional chauffeur services, and private health insurance as part of their benefits package.

Staff also receive a defined contribution pension scheme with an employer contribution of 25% of basic salary.

Baroness Denise Kingsmill, non-executive director at IAG, said: “2014 has seen continued improvement of our performance, with profitability much increased compared to 2013.

“During 2014 we have been reviewing the remuneration strategy, and one of the results of this will see a further strengthening of the alignment between executives and shareholders. This has partly been driven by feedback from investors and revisions to the UK Corporate Governance Code.

“The group has achieved significant success in continuing to find synergies, and has outperformed against cost and revenue synergy targets. These successes will be rewarded to those involved through the personal one-third portion of the annual incentive award.

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“The remuneration committee will continue to ensure that executive remuneration underpins the business strategy and is confident that the overall reward framework for 2015 and beyond is in the best interests of shareholders.

“We are aware of the challenging economic environment and its potential impact on the organisation’s finances, but it also recognises that it is very important to incentivise and retain management to drive business performance.”