Virgin Blue’s new chief executive, John Borghetti will pocket up to $4.5 million this year, 60 percent more than his predecessor Brett Godfrey.
Mr Borghetti can earn as much as $1.8 million more than departing CEO Brett Godfrey. With Mr Borgetti earning a base salary of $1 million and a potential cash bonus of another million tied to his short term performance, this could be topped up further by an additional $2.5 million tied to long term performance targets, earning Mr Borghetti up to $4.5 million.
Mr Borghetti’s pay deal is ‘‘strongly weighted towards alignment with shareholders’ interests’’ said Virgin Blue’s chairman, Neil Chatfield in a statement.
Former Virgin Blue CEO Brett Godfrey has answered questions at a farewell dinner at Sydney’s Ivy last night on his future, with Mr Godfrey looking at more relaxing duties.
“I’m going to be a house husband,” said Mr Godfrey “I have drawn the line at tuckshop duty — I’d be the only bloke there,” he joked.
In commenting on the state he was leaving Virgin Blue in, Mr Godfrey was content, having completed his to-do list only days before his exit.
“I leave quite content. As of now I’m sitting here going ‘I’m done’,” Mr Godfrey said.
“I honestly thought I’d have three or four months to take it easy but it’s three or four days. So I will enjoy next week and I’m quite happy how it’s turned out.”
Incoming Virgin Blue CEO Mr Borghetti takes the helm as the company issued a profit downgrade from up to $110 million, closer to $80 million for this financial year. However Mr Borghetti is presented with a significant opportunity with departing CEO Brett Godfrey locking down a code sharing agreement with Air NZ and Delta Airlines.