International Airlines Group (IAG) among whose brands are British Airways and Iberia, has a new CEO – Iberia Chief Executive Luis Gallego. However, outgoing CEO Willie Walsh, as is often the case, is not departing without controversy.

Walsh, who was headed BA before taking on the IAG leadership, has left the airline with his final year’s earnings of £3.2 ($5.46) million untouched. The package included a bonus of £833,000 ($1.4 million)

Around 20% of shareholders voted against Willie Walsh’s pay packet.

The 58 year-old Walsh who was due to retire in March, postponed his departure due to the pandemic, retired immediately after this week’s AGM. He could also potentially earn 1.1 million shares worth £5.2 ($8.89) million under previously awarded long-term bonus schemes over the next four years, if performance targets are met.

IAG said it was ‘disappointed’ that only 71% of shareholders had voted in favour of the Group’s remuneration report. It said ‘the board will continue to engage with shareholders to fully understand their concerns’.

In June, MPs branded BA a ‘national disgrace’ over its plans to cut 12,000 jobs after receiving government-backed loans.

Gallego “It’s an honour to become IAG’s Chief Executive, following in Willie’s footsteps and building on all that he has achieved in the past nine years.

“This is a hugely difficult time for our industry. Not only do we face the immediate challenge of Covid but we must ensure that IAG is strong and resilient when it emerges from the crisis.

“The Group was in good shape before Covid with a history of strong profitable growth. We have a portfolio of world class brands, acquired through selective M&A, in which we have invested effectively for the benefit of our customers while keeping costs under control.

“My goal is to ensure that IAG adapts to the ‘new normal’ in aviation and builds on its strengths to secure a strong future for the Group, our customers, shareholders and employees”.