Former Heathrow Airport CEO John Holland-Kaye recently faced scrutiny following the revelation that he received a record pay package amounting to £6.4 million, as outlined in the airport's annual report. This significant payout, which included an annual bonus of over £1.2 million, came under fire particularly as flights experienced average delays of 20 minutes throughout the year.
Holland-Kaye, who had served as the CEO of Heathrow for almost a decade, was replaced by Thomas Woldbye from Copenhagen Airport in October. Since taking on the top position, Woldbye has already received over £1 million in compensation. During his time as CEO, Holland-Kaye managed various challenges, including steering Heathrow's recovery from the COVID-19 pandemic, securing the airport's first post-pandemic operating profit last year. However, he also faced criticism for engaging in disputes with airlines over landing charge levels, which were resolved by the Civil Aviation Authority in March.
Heathrow defended Holland-Kaye's substantial payout as a recognition of his long and dedicated service to the airport, citing notable increases in passenger numbers approaching pre-pandemic levels and an adjusted EBITDA that rose by nearly a third to £2.2 billion. While emphasizing the importance of strong leadership and dedicated teams in the face of increased travel demand, the disclosure of the sizable pay packets for both Holland-Kaye and Woldbye has raised questions, especially coinciding with the beginning of the annual meeting season in the City. As shareholders and stakeholders analyze executive compensation, the record payout to Holland-Kaye has sparked discussions regarding fairness and accountability in corporate governance.