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Cathay Pacific CEO misses out on bonus amid big losses



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Top managers at Cathay Pacific did not get bonuses for the first time since 2009.  Based on figures from the airline’s annual report released yesterday, CEO Rupert Hogg pocketed HK$9.1 million for 2017, down from the HK$12 million, he made in the previous year.

It was reported Hogg is one of the lowest-paid chief executives among 25 publicly traded airlines in Asia-Pacific, Europe and North America.  He was only ahead of chief executive and founder of Norwegian Air Shuttle, Bjorn Kjos, who took home US$275,000, according to the most recent data from 2016, and Aditya Ghosh of Indian budget airline Indigo, who earned US$1 million in the 2016-17 financial year.

Chairman John Slosar, Hogg’s predecessor Ivan Chu Kwok Leung, and finance chief Martin Murray were among the executives to miss out on bonuses.   A source told the South China Morning Post, following the airline’s HK$1.25 billion loss for 2017, members of senior management knew they are not getting the bonuses which are paid in line with the company’s performance during the previous year.

Algernon Yau Ying Wah, chief executive of sister airline Cathay Dragon, did get a bonus of HK$996,000. He was a Cathay Pacific executive director until May 2017. The payout was related to his work with the smaller carrier.

2009 was the last time senior management at the airline did not get bonuses, after the airline lost HK$8.5 billion in 2008.  The airline has suffered because of competition from budget airlines and losses from fuel hedges.

Last year, Cathay Pacific made 600 employees redundant at its head office, including 190 management roles.  In November last year, pilots at the airline threatened to strike because they did not agree to the plans to freeze pay and changes in pension benefits proposed by management.

ALSO READ: Cathay Pacific to slash pilots’ compensation

 

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