EasyJet’s new male CEO takes pay cut
British budget airline EasyJet’s new CEO will be taking a pay cut in the name of gender pay parity.
Johan Lundgren was initially to be pay £740,000 (S$1.35 million) a year, but this figure will not be reduced to £706,000 (S$1.28 million) – a 4.6% reduction which means that his salary will match that of his female predecessor, Carolyn McCall.
Lundgren joined the airline at the end of last year. In his previous job at multinational travel and tourism company TUI Group, he was paid €875,000 (S$1.42 million)..
In a statement, he said that he was committed to equal pay opportunities between men and women. However, the rest of his pay package remains the same, and Reuters reports that a “bigger proportion” of his salary will likely be paid through bonuses and incentive targets.
At EasyJet presently, male employees earn twice as much as women – although the airline says that this is due to 94% of its pilots – who are paid more than other employees – being male.
EasyJet plans to recruit more female pilots, and aims for a fifth of the pilot force to comprise women by 2020.
The World Economic Forum Global Gender Gap Report for 2017 – which benchmarked 144 countries regarding their progress on gender parity – noted that the gender gap is widening, and that “at the current rate of progress, it is estimated that gender parity across the world will take over two centuries, 217 years to be exact”.