
British Airways (BA) Chief Executive Officer Sean Doyle has earned a £2.1 million ($2.8 million) bonus tied to a long-term share incentive plan, despite ongoing issues with customer service and compensation disputes.
The bonus followed Doyle’s sale of 650,000 shares in BA’s parent company, International Airlines Group (IAG), based in Madrid. The shares were sold on May 22 at approximately £3.30 each, under a 2022 performance-linked incentive scheme set to vest in 2025.
CEO Compensation Details
- Doyle’s base salary in 2023 was £670,000.
- Including bonuses and incentives, his total remuneration for 2022-23 reached around £1.5 million.
- The £2.1 million bonus stems from the share sale linked to the long-term incentive plan, mostly awarded in shares.
Operational Performance vs Customer Satisfaction
British Airways has made operational improvements, ranking as the 7th most punctual global airline and 8th in Europe as of April 2024, with notable on-time performance at London Heathrow (LHR).
However, customer satisfaction remains a concern:
- IAG’s 2024 Net Promoter Score (NPS), measuring passengers’ likelihood to recommend the airline, stood at 22.6, below the target of 28.6.
- While above Bain & Company’s “good” threshold of 0, this score trails competitors like Lufthansa, which scored 35 in 2023.
Compensation Disputes and Customer Complaints
Between October and December 2024, British Airways paid nearly £1.5 million in compensation claims after initially denying them. An independent arbitration service reviewed 3,199 complaints, resolving 2,833 cases, with 89% ruled in favor of passengers.
These cases involved delays, cancellations, and lost luggage, highlighting a disconnect between operational metrics and passenger experience.
Leadership Pay Disparity
In 2024, IAG disclosed a significant gender pay gap among senior leadership, with male executives earning an average of over €745,000 annually, compared to €151,000 for female executives in equivalent roles.
The group attributed this disparity to the absence of women in CEO and chairman positions, underscoring the need for leadership equity reforms.
Ongoing Challenges and Industry Context
Despite Doyle’s leadership since October 2020, British Airways continues to face criticism over service quality and staff compensation. The CEO’s substantial bonus contrasts sharply with cabin crew pay issues, where some staff have received less than minimum wage in past years and have limited bonus opportunities.
British Airways is balancing shareholder expectations linked to executive rewards with the pressing demand for improved passenger experience and fair employee treatment.
This development highlights the complex dynamics at British Airways as it navigates operational recovery, customer satisfaction challenges, and leadership compensation scrutiny.