Iberia, BA bosses to get pay raises after merger
The heads of Iberia and British Airways will get big pay increases in a new umbrella company which will control the two airlines after a merger, the two firms said on Wednesday.
Under an agreement reached last month between the two airlines, BA chief executive Willie Walsh will become chief executive of the umbrella company, International Consolidated Airlines Group (IAG), while Iberia chairman Antonio Vazquez will become group chairman.
Walsh will earn 825,000 pounds (939,000 euros, 1.3 million dollars) a year as chairman of IAG, a 22-percent increase over his current salary, IAG registration documents published online by the two airlines showed.
Vazquez will have a basic pay of 625,000 pounds per year, compared to the 337,000 euros he earns now.
The two airlines expect their merger, which will create Europe's second-biggest airline by market value after Lufthansa, to be completed in January 2011.
BA said it expected the merger to be completed on January 21, with shares listed on the London stock exchange three days later.
Iberia has called an extraordinary shareholders assembly for November 28 to vote on the planned merger while BA shareholders are scheduled to vote on the issue the following day.
The two airlines signed the merger deal on April 8, seeking to compete more effectively in the fast-consolidating industry. The European Commission cleared the deal in July.
© 2010 AFP