1time boss defends bonus payments
Johannesburg - The boss of low-cost carrier 1time Holdings [1TM:JSE] has said bonuses paid out to executive directors in the 2011 financial year-end were not excessive.
Glenn Orsmond, CEO of 1time, said executive directors have no say over bonuses.
"Executive director bonuses are approved by a remuneration committee which comprises three non-executive directors. Executive directors have no say in the bonus decisions."
The airline's top management was criticised during last week's annual general meeting, after it became known that they had received bonuses of about R2m in total - this in a year when the airline industry is struggling with high input costs due to the oil price spiking to more than $115 a barrel.
"1time has never paid excessive bonuses. In the eight years 1time (has been running) the total bonuses paid to the three exec directors average out to less than a thirteenth cheque each year," Orsmond told Sake24 on Monday.
He says the airline does not pay bonuses if it makes a loss.
In 2009 1time made R90m profit, and for 2010 R67m profit.
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