EasyJet (LON: EZJ) paid Chief Executive Johan Lundgren almost £3 million for the year to the end of September despite the airline continuing to make a loss, the company revealed in its annual report.
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The pay is nearly four times the £794,000 Lundgren was reportedly paid in the previous 12 months.
Lundgren was awarded 81% of his available bonus by achieving targets set by the airline's remuneration committee, such as reaching the customer satisfaction threshold.
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EasyJet, and other airlines struggled with staffing issues this year due to previous layoffs due to coronavirus-related travel restrictions. It resulted in waves of flights being cancelled and significantly impacted EasyJet's recovery following the pandemic, with the low-cost carrier reporting a £208 million loss for the year.
However, the airline did significantly cut its losses from over £1 billion in 2021, with strong demand driving revenue.
EasyJet Chief Financial Officer Kenton Jarvis also received a similar pay package, with his total annual pay rising to £2.2 million. Jarvis joined the airline midway through 2021.
“Salaries for our Executive Directors have been considered very carefully against the pay awards made for our employees in 2022 and into 2023,” said Moni Manning, Chair of EasyJet's pay committee. “easyJet has made significant step changes in salary and packages for the wider workforce for 2022 and into 2023, reflecting that generally no increases were awarded over the last few years in the context of the significant cost control needed in light of the impact Covid-19 on the business.”
“The Committee noted that the CEO had not received an increase in base pay since 1 January 2020 but also recognised the broader considerations for restraint,” she added.
In the company's annual report, Lundgren said the airline is targeting customer growth over the next year while it is “well placed to drive returns and margins while maintaining a rigorous focus on cost.”
EasyJet shares are down more than 1% so far on Tuesday.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.