Webjet execs’ bonuses more than triple

News about how well Webjet is going is kind of like a Melbourne Cup hangover, it’s inescapable, unavoidable and increasingly more unbearable as time goes on.

But here it goes anyway.

In the most recent ASX announcement from the company, Webjet has stated its Executive Teams’ bonuses will grow from 15 per cent to 55 per cent for 2018.

The statement read:

“For the current financial year and beyond. the Board of Webjet Limited… has resolved to change the long-term incentive (LTI) component of the remuneration arrangements applicable to its Executive KMP Team.”

So what does this mean exactly? Execs will receive a hefty slice of the OTA’s pie.

“Under the existing LTI arrangements, Exective KMP participatns would have been offered shared of a value equal to 15 per cent of their fixed annual renumeration (FAR).”

It continues:

“Under the new plan, in FY18, each member of the Executive KMP team will be offered a number of performance rights (calculated on a fxied price basis) of a value equal to 55 per cent of their FAR.”

“The performance rights will vest in three years subject to the company’s performance against two hurdles – an EBITDA Growth and a TSR Growth condition, with performance measured at the end of the third year,” it added.

The announcement comes just a few months after Webjet’s Chairman Roger Sharp issued his annual report letter in September, which showed quite a good year for the OTA.

The company posted a earnings before interest and tax of %51 million, up more than 40 per cent on 2016 results.

“FY 2017 was a milestone year for Webjet Limited, with strong organics growth in bookings, revenues and profit,” Sharp said.

“Our customers’ activity tells the story succinctly: three-year CAGR in organic travel bookings is 26 per cent across the business and 36 per cent after acquisitions.

“Webjet’s OTA business delivered an impressive performance with domestic and international flight bookings growing more than six times the market rate in Australia.”

It follows Webjet’s announcement in August which showed a net profit after tax of $52 million for the 2017 financial year, a jump of 146 per cent on last year.

As well as this, revenue scooped a 52 per cent increase to hit $234.9 million.

The ongoing growth of the Webjet OTA business was boosted by flight bookings growing at more than six times the underlying market.

Throughout the year, the business completed its integration of Online Republic, resulting in a 25 per cent leap in earnings before tax.

Meanwhile, the $28 million gain on sale of Zuji allowed Webjet to focus on a higher growth in B2B accommodation in the Asian market, and its WebBeds business partnered with Thomas Cook and saw the launch of FIT Ruums in Asia.

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Email the Travel Weekly team at traveldesk@travelweekly.com.au

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