Air NZ chief gets bonus rise as profits fall

Air New Zealand chief executive Rob Fyfe will be paid an increased cash bonus for his performance during the past financial year.

Although his base salary remains frozen at $1.2 million, his short-term bonus for the 2008-2009 year will increase from $287,100 to $1,240,800. That will be paid next year.

The airline yesterday reported an adjusted profit of $118 million. Although that is down 19 per cent on the previous year, it is among a small group still in the black.

Chairman John Palmer said Mr Fyfe had outperformed his targets, which were not based just on comparing year-on-year financial performance by Air New Zealand, but comparison to other carriers. Leadership, strategy development, balance sheet strength and dividend flow are also taken into account.

Mr Fyfe was paid a total of $3.09 million following the 2007-2008 year and $2.28 million from the past year.

He said with the addition of long-term share incentives that could top $3 million in next year's figures.