UPDATE: BA's CEO Turns Down Bonus, But CFO Accepts

By Kaveri Niththyananthan Of DOW JONES NEWSWIRES LONDON (Dow Jones)--British Airways PLC (BAY.LN) Chief Executive Willie Walsh has turned down his bonus for the second consecutive year, although Chief Financial Officer Keith Williams has decided to take home his award despite the airline posting its worst ever pretax loss. Walsh has turned down a GBP334,000 award as deferred shares, the airline confirmed after it released its annual report. He earned a GBP674,000 salary for the financial year ending March 31, 2010, down from the GBP743,000 he took home the year earlier because he worked for free during the month of July. For the financial year ending March 2009, Walsh turned down in excess of GBP500,000 in deferred shares. He took the decision to work for free last July after the airline had called on staff to take unpaid leave, unpaid work and volunteer for redundancy as part of its efforts to cut costs. Chief Financial Officer Keith Williams, who also worked free last July, takes home a basic pay of GBP403,000 and the GBP167,000 in deferred share award. Last year, Williams also accepted a deferred share award, but said he wouldn't cash it in for as long as he works for the company. A spokesman for BA said Williams has "guided the airline through one of the most severe financial crises" that company has ever endured and added he is one of the lowest paid CFOs in the FTSE100. Walsh's decision comes after BA posted a GBP531 million pretax loss for the 12 months to March 31, although currency hedging gains meant it made a GBP182 million net profit. It also comes as BA continues to fight labor unions representing its cabin crew, who have run a series of strikes since March over BA's plans to reduce cabin crew numbers on some flights. The strikes have cost the airline in excess of GBP150 million. Unite's assistant general secretary Len McCluskey said Thursday that there should be no bonus or share awards until BA resolves its 16 month dispute with cabin crew. "There would have been uproar if Mr Walsh had pocketed a bonus this year," said McCluskey. "His plans for BA have seen it become a byword for bullying, driven customers into the arms of competitors, poisoned working relations and is denying the airline a peaceful, stable future." The union has said it will ballot cabin crew for further strike action after the last five-day walkout ended Wednesday. - By Kaveri Niththyananthan, Dow Jones Newswires; 4420 7842 9299; kaveri.niththyananthan@dowjones.com (END) Dow Jones Newswires June 10, 2010 07:32 ET (11:32 GMT) Bay Capital