Adviser says vote 'no' on Virgin CEO's triple bonus
THE board of Virgin Australia faces a rebuke from minority shareholders over its executive pay after an influential adviser urged a no vote because of what it describes as ''very large'' short-term bonuses.
Despite Virgin posting a $23 million profit, CGI Glass Lewis has also recommended a vote against the remuneration report because of the high pay levels for the airline's chief executive, John Borghetti.
His total pay rose by 45 per cent to $4.07 million for the year to June. It included $1.29 million in base pay, $1.16 million in short-term cash bonuses and $1.37 million in long-term share-based payments.
CGI said Mr Borghetti's total pay was more than double the median of Virgin's market peers. It also pointed out that his short-term bonus was about three times higher than the median for his peers, and outpaced Virgin's ''value, sector and industry peers''.
''Given the … CEO's high remuneration levels, the lack of justification for such levels and the compounding effect high fixed remuneration has on incentive-based pay, we cannot recommend that shareholders support the remuneration report,'' CGI said.
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