Former Air NZ chief walked with $4m

By DANIEL RIORDAN

Former Air New Zealand chief Jim McCrea left the airline last year with almost $4 million, the company reveals in its annual report.

Mr McCrea's 44-year career at the national carrier ended abruptly on July 7 last year over a contract dispute.

He made $1.3 million in the year to June last year as managing director, and the $3.87 million he made in the year to this June includes a restraint of trade payment, superannuation entitlements and substantial accrued leave.

Mr McCrea spent nine years in the top job and, alongside former chairman Sir Selwyn Cushing, was an architect of the Ansett purchase that almost bankrupted the airline and last month forced an $885 million Government bailout.

He defended the Ansett deal to the Business Herald last month, saying it would have proved successful had the airline responded better to a changing Australian marketplace.

He has maintained a low profile since leaving the airline, sitting on the board of Hawkes Bay meat company Richmond and consulting for a couple of airlines since his restraint of trade with Air New Zealand expired in July.

The annual report, released yesterday, also reveals that Sir Selwyn, who ran the company as executive chairman until new chief executive Gary Toomey took over in January, was paid $270,000 for his troubles, on top of director fees of $154,000.

Australian director Sean Wareing, who retired in November, left with a golden handshake of $187,000 as well as $30,000 in director fees.

Directors who left after the balance date have said they would not take golden handshakes.

The annual report - a modest- looking affair with no photos - also reveals that 3005 company employees made more than $100,000 a year. They included 2244 overseas employees (mostly Ansett staff) and 498 New Zealand-based aircrew.

Top earners were three overseas employees who each made between $1.34 million and $1.45 million.

Only one New Zealand-based worker made the million-dollar club.

Several senior executives on both sides of the Tasman were laid off during the year and their redundancy payments will have swelled the reported remuneration figures.

How much Mr Toomey made for the six months he was in charge during the period covered by the report is unclear. The size of his final payout will not be disclosed for another year. Speculation puts the payout at around $2 million, which is thought to be close to his annual salary.

* Mr McCrea's payout was well short of the amount paid to Dennis Eck, former chief executive of Australian retailer Coles Myer. When he left the company last month he was paid $A8.65 million ($10.5 million).

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