Fyfe's pay takes $1m leap

Air New Zealand chief executive Rob Fyfe. Photo / Greg Bowker

The pay packet of Air New Zealand chief executive Rob Fyfe has soared by nearly $1 million. But it might only last a year. Fyfe's total remuneration for the 2010 financial year was $2.4 million, up from $1.5 million in 2009.

Fyfe's pay included a base salary of $1.2 million and a performance incentive of $1.2 million which he earned the previous year.

However, the performance incentive Fyfe earned during 2010 - which he will receive in 2011 - dropped 65 per cent to $438,398.

In its annual results Air New Zealand said its philosophy was to set fixed base salaries at 90 per cent of the market median for executives who were fully competent in their role.

"However these fixed base salaries for the [chief executive] and executive team have been frozen, with the last adjustment being in July 2007," it said.

"The board lifted the freeze in February 2010 and the first adjustments in salary will be considered for the 2011 financial year."