New easyJet boss takes salary cut as airline reveals gender pay gap

Reuters
Reuters
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01 February, 2018

The new CEO of EasyJet, Johan Lundgren, has chose to lower his salary "as a gesture to equal pay", according to British airline reported in a statement.

His starting salary was £740,000, and that is now being cut to match the £706,000 earned by McCall, who has since become ITV's chief executive.

EasyJet, the Luton, England-based carrier, had set Lundgren's starting salary at approximately $1.04 million; a raise of almost $48,000.

The European carrier revealed in November that it had a gender pay gap of 52%, an imbalance that it says is driven by the higher salaries paid to its mostly-male pilots.

So let's call this an important start - both in message and in action - aimed at keeping the critical conversation going.

"At easyJet we are absolutely committed to giving equal pay and equal opportunity for women and men", said Lundgren.

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The airline has a 2020/20 target where 20 percent of new pilots will be women by 2020, up from 6 percent in 2015. In all or respects, including bonuses, your remuneration package will be identical to McCall's. It has a large wage gap of 51.7%.

"This is not about unequal pay. easyJet's pilots (and cabin crew) salaries and other pay is collectively agreed and negotiated with the trade unions, which means that the pay rates are exactly the same for men and women".

She was appointed dame for services to the aviation industry in 2016. That's a 48% increase on the previous year and takes the proportion of easyJet new entrant female pilots to 13%.

But we recognise we need to do better. The airline, 94 percent of whose pilots are male, has set a target that 20 percent of its new pilots should be female by the end of the decade.

McCall had been credited with transforming the airline and was making £706,000 when she left the carrier last November after eight years in the job, so that's a cut of almost five per cent and A$60,000.


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