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Saturday, August 8, 2020

Stats Gate

CEOs That Accepted Reduction In Their Salary Due To COVID-19 Pandemic

Ronojoy Dutta

The COVID-19 pandemic shook many professional sectors but the airline companies had significant losses. So, some CEOs accepted a reduction in their salary because of the difficult times.

  • Ed Bastian – Delta
    He is the CEO of Delta airlines from May 2016. He comes from New York and made clear of cutting his basic salary 100% (890.000 dollars) for the next six months. According to Bastian the airline companies need at least two years in order to return to the level before Covid-19 pandemic. Delta airlines added about 2.000 more flights for July and August.
  • Brad Tilden- Alaska Air
    Brad Tilden announced on March that he will cut completely his basic salary. The same decision made and the president of the airline company Ben Minicussi. Brad Tilden works for the company from 1991 and he took over as CEO from May 2012. He struggles to do his best for the airline company as it is losing 5,5 million dollars per day.
  • Scott Kirby – UAL
    The new CEO OF United Airlines is determined to follow an aggressive strategy and make radical changes in order to protect the future of the company. His basic annual salary is about 1 million dollars but he won’t get a cent till the end of 2020 trying to help the company recover from this difficult situation. United Airlines seem to be losing 40 million dollars per day.
  • Gary Kelly – Southwest
    He accepted to have a 10% reduction in his salary. Gary Kelly was named best CEO of America for 2008, 2009 and 2010 from Institutional Investor magazine. He works for Southwest from 1986. He serves as a chairman and CEO from 2008. In May the company offered to the public the cheapest tickets ever before in its 48 years history.
  • Robin Hayes, JetBlue
    He took over as a CEO for JetBlue in February 2015. He accepted to have a 20% reduction in his salary in order to help the company minimize the expenses. Robin Hayes announced that between July and August the company will add 30 new internal destinations focused on the VFR (Visiting Friends and Relatives) market.
  • Maurice Gallagher – Allegiant Air
    He decided not to get a cent during this difficult period in order to help the company recover. Analysts say that Allegiant Air is at a better position compared to other companies, while it’s financial liquidity will last till 2022.
  • Edward Christie – Spirit
    Edward Christie works for Spirit the last 8 years. He serves as a CEO  from January 2019. Edward Christie accepted his salary to be reduced, while at the same time he passed the message to the company’s staff and customers that Spirit is a low-cost airline with high-quality services.
  • Ronojoy Dutta – IndiGo
    Ronojoy Dutta accepted a 25% salary reduction trying to keep at a good level the financial liquidity of the company. It is worth mentioning that the Indian airline sold 13 airplanes. The low-cost airline IndiGo was a leader at the airline market the previous years and showed it’s great ambitions referring to the international flights. The company has to accept the fact of having no earnings at all for the next 14 months.
  • Willie Walsh – British Airways
    The company has a loss of about 759 million dollars every month due to the coronavirus pandemic. Willie Walsh was about to leave in March but he decided to stay till September in order to help the company at this difficult period. He accepted a 25% reduction in his salary. He serves as a CEO in British Airways from 2005.
  • Calin Rovinescu – Air Canada
    Air Canada has already cut 20.000 job positions while analysts predict that it will return in 2019 level profitability in about three years. Calin Rovinescu won’t receive a cent the following months for his services trying to help the airline recover from the COVID- 19 pandemic effects.

Have you read?
World’s Best CEOs.
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Rich List Index (Top Billionaires).
World’s Most Powerful Passports.
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Maria Gourtsilidou
Maria Gourtsilidou is Senior Editor of Research and Data Analytics at the CEOWORLD magazine. She is responsible for driving thought leadership, using data analytics to showcase the company’s products and services, and fostering knowledge sharing between CEOWORLD magazine and client organizations. She studied Public Administration (Economics Of The Public Sector) in Greece and holds a Bachelor’s in Public Administration from the Panteion University of Political & Social Studies. Follow Maria Gourtsilidou on Twitter. Write at maria-gourtsilidou@ceoworld.biz.