Wednesday, 26 September, 2018

EasyJet chief cuts salary as airline reveals 52% gender pay gap

Johan Lundgren is a 30-year travel industry veteran and former deputy CEO of TUI. Pic easyJet Image Johan Lundgren took over at easy Jet in December
Nellie Chapman | 29 January, 2018, 21:44

EasyJet's chief executive is voluntarily taking a £34,000 pay cut so that his salary matches that of his predecessor in a bid to address the gender pay gap. This is to match what former CEO Carolyn McCall was paid, she left the company previous year to take the top job at ITV.

The budget airline boss said on Monday that he will reduce his basic annual salary of £740,000 to £706,000, equal to Ms McCall's most recent pay before she left easyJet for ITV in November.

The gender pay gap at EasyJet is almost 52 percent, making it one of the widest in the United Kingdom, according to the Financial Times. In all other aspects, such as bonuses, Lundgren's pay package is identical to McCall's, the airline said.

Under new rules, all United Kingdom firms that employ more than 250 employees have to disclose their gender pay gap by April this year.

EasyJet was "absolutely committed" to giving equal pay and equal opportunity for women and men, said Mr Lundgren.

The gender imbalance, company explains, is a problem for entire aviation industry, where only 4% of commercial pilots around world are women. The salaries of pilots (and cabin crew members) have been collectively agreed and negotiated with trade unions, which means that y are exactly same for men and women. "EeasyJet is above sector with 6%", explains statement.

"I want to ratify my commitment to equalize gender imbalance in our pilot community, since it is this same one that increases wage gap between men and women".

"Like all airlines pilots make up a large proportion of easyJet's employees, they are paid more highly than our other communities and, most materially, 94% of them are male", said the airline.

EasyJet has pledged to address the gap in its own ranks by recruiting more female pilots - up to 20 percent by 2020.

To fix this gender pay gap, the company is aiming to bring up their female pilot recruits from 13 per cent to 20 per cent by 2020.