Business

Wizz Air says CEO is unlikely to meet targets needed to trigger £100mn bonus

Published

2 hours ago

September 25, 2024

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Struggling Wizz Air has conceded that its chief executive is unlikely to deliver on performance targets needed to earn a controversial £100mn bonus after a “parade of black swans” hammered its shares.

Shareholders in the London-listed low-cost airline have instead backed a new bonus scheme for József Váradi that includes a one-off share award worth around €2.3mn for this year, and the opportunity to earn around €4mn per year in shares as bonuses from 2026.

Stephen Johnson, interim chair of the remuneration committee, said on Wednesday that a new plan was needed to “motivate” and “retain” Varadi, who was “by far the worst compensated CEO” among his airline peers.

Wizz Air’s ambitious growth plans have been knocked by a string of crises, most notably the grounding of scores of its aircraft because of possible engine problems. Its shares have slumped 39 per cent this year, while those of BA owner IAG have risen by almost a third.

Line chart of Share price, pence showing Wizz Air shares have tumbled over the past three years

Váradi was paid a total of €1.4mn in Wizz Air’s 2024 financial year, down from €4mn in 2019. That compares with IAG chief executive Luis Gallego, who was paid £3.1mn in 2023, and easyJet’s Johan Lundgren who received £2.2mn. Both these companies have enjoyed a smoother ride as the industry has recovered from the pandemic.

Váradi, who was one of the airline’s founders in the early 2000s, has grown it into one of the most significant players in European aviation after masterminding a growth strategy that prioritises cutting operational costs.

Wizz Air offered Váradi a £100mn bonus in 2021 if he could raise its share price to £120 by 2026, with shareholders last year approving a change to give him until 2028 to achieve the target.

But with shares trading at £13.45 at close on Wednesday, Johnson told shareholders in notes accompanying its AGM notice that the old plan was “underwater” and the chances of Varadi hitting his targets were “remote”.

“József has been instrumental in leading the company to success . . . and the Board believes that it is essential that he be retained to lead the company through its challenges for the next few years. However, that objective is at risk,” Johnson said.

Váradi has promised to significantly grow the airline this decade, and is working towards a long-term target to grow passenger capacity by 20 per cent a year and have 500 aircraft by 2030, although he previously said this could slip to 2031 or 2032 because of supply chain problems.

The airline has been hurt by a large exposure to Ukraine, Russia and Israel, where operations have been disrupted by war. It has also been forced to ground around 45 planes, about a fifth of its fleet, because of potential problems with their Pratt & Whitney engines.

“Unfortunately, the parade of ‘black swans’ has continued,” Johnson said.

The old £100mn bonus scheme will still be in place, but any payouts from the newer scheme would be deducted from it.

The new scheme offers Varadi a one-off share award of three times his €775,00 base salary, worth €2.3mn, payable in October.

It also contains a new annual incentive plan from the 2026 fiscal year, worth up to five times his salary, or €3.9mn in shares at current levels.

Wizz Air suffered a sizeable shareholder rebellion at the AGM on Wednesday, where only 63 per cent of shareholder voted to support the changes.

In a statement, Wizz Air said: “The board is pleased that investors recognise the need for appropriate incentives for the CEO and management team during this period of significant external challenges for the company and the airline industry.”

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Travel

Airline reveals plans for £85million revamp – including new economy cabins and UK flights

Published

3 mins ago

September 25, 2024

NewsAdmin

Brussels Airlines has revealed plans for new cabins and more aircraft

NEW economy cabins are coming to a European airline that has flights from the UK.

Brussels Airlines has revealed it’s huge expansion plans, which includes a €100million (£85million) revamp of its cabins.

All three cabins will be updated, although more is to be revealedCredit: Brussels Airline

The new interiors will be found on their long-haul flights.

All three cabins – economy, premium economy and business class – will be updated.

More is to be revealed at a later date, regarding what to expect from the new ones.

The airline’s CEO Dorothea von Boxberg said: “The multi-million investment in cabin interior allows us to offer our customers an even more premium experience.

“This is a moment of pride for everyone at Brussels Airlines.

“It’s with great pleasure that we will offer more connections to our increasing number of passengers on our growing network.”

It’s not the only new expansion planned for the airline.

Three new Airbus A330 aircraft are to be added to the long-haul fleet, taking the number to 13.

And more winter sun destinations are to be added, as well as more UK flights.

Flights from Birmingham Airport will also be reintroduce,d with six flights a week in winter.

European airline to launch ‘business class style’ economy seats without the cost

Currently, Brussels Airlines has flights from a number of London airports, as well as Manchester, Bristol and Newcastle

The cheapest fares are found from Edinburgh Airport, with trips to Brussels from £112 each way.

The airline has also won a number of awards this year, including Europe’s Leading Airline Lounge at the World Travel Awards.

It’s not just Brussel Airlines updating their aircraft fleet.

Emirates has added Premium Economy to their flights, rolling it out across their plans since 2022.

And earlier this year, British Airways revealed its huge £7billion makeover.

This includes revamped seats with larger overhead lockers and charging ports.

A new First Suite will also be launched on flights between the UK and US.

And both the website and app are also being updated, with select passengers currently trialling it out.

Luggage Rules for Major Airlines

British Airways

Cabin Baggage: 1 cabin bag (max 56 x 45 x 25 cm) and 1 personal item (max 40 x 30 x 15 cm), total weight up to 23 kg.
Checked Baggage: Economy allows 1 bag up to 23 kg. Premium Economy, Business, and First Class allow more.

EasyJet

Cabin Baggage: 1 small cabin bag (max 45 x 36 x 20 cm), no weight limit but must fit under the seat.
Checked Baggage: Fees apply, up to 23 kg per bag. Passengers can pay for additional weight up to 32 kg.

Ryanair

Cabin Baggage: 1 small bag (max 40 x 20 x 25 cm). Priority boarding allows an additional larger cabin bag (max 55 x 40 x 20 cm, up to 10 kg).
Checked Baggage: Fees apply, options for 10 kg or 20 kg bags.

Virgin Atlantic

Cabin Baggage: Economy and Premium allow 1 cabin bag (max 56 x 36 x 23 cm, up to 10 kg). Upper Class allows 2 bags.
Checked Baggage: Economy Light has no checked baggage. Economy Classic, Delight, and Premium allow at least 1 bag up to 23 kg. Upper Class allows 2 bags.

Emirates

Cabin Baggage: Economy allows 1 bag (max 55 x 38 x 20 cm, up to 7 kg). Business and First Class allow 2 bags (total up to 12 kg).
Checked Baggage: Economy Class varies by fare type (from 20 kg to 35 kg). Business and First Class allow up to 40 kg and 50 kg respectively.

The Sun was the first to take a look inside the new security centre too – here’s what it was like.

And other airlines are going the other way – with Air France ditching all free food onboard.

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Business

OpenAI’s chief technology officer Mira Murati to leave

Published

16 mins ago

September 25, 2024

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Mira Murati, OpenAI’s chief technology officer who temporarily served as chief executive during the failed coup against founder Sam Altman, is leaving the company.

In a message shared with the company’s employees on Wednesday, she said: “After much reflection, I have made the difficult decision to leave OpenAI”.

It is the latest blow to the Microsoft-backed artificial intelligence start-up, which has had high-profile departures this year, including founders John Schulman and Ilya Sutskever. Schulman has joined rival Anthropic, while Sutskever has launched his own venture aimed at building “safe” AI models.

Murati, 35, spent six and a half years at the company and was made interim CEO after OpenAI’s board ousted Altman last year for what they said was his failure to be candid. Murati was in the position for four days until Altman returned, following intense pressure from investors and staff. He was later cleared of wrongdoing following a review into his conduct.

OpenAI, which makes ChatGPT, is one of Silicon Valley’s most valuable start-ups. It is in discussions to raise more than $6bn at a $150bn valuation. It recently released new models known as o1 that it says are capable of reasoning.

“There’s never an ideal time to step away from a place one cherishes, yet this moment feels right,” she wrote. Murati said she was leaving because she wished to “create the time and space to do my own exploration”. She added her primary focus would be to “ensure a smooth transition”.

“While I may no longer be in the trenches with you, I will still be rooting for you all,” she wrote.

In her time at OpenAI, Murati led the company’s efforts to build ChatGPT as a standalone product, building on the technical breakthroughs made with GPT, the large language model that underpins it. She also oversaw releases and improvements of the company’s image-generator Dall-E and AI code generator Codex.

She joined the company in 2018, having previously worked at augmented reality start-up Magic Leap and electric-car maker Tesla. At the time, OpenAI was a non-profit dedicated to ensuring that artificial general intelligence — which aims to replicate human intelligence — would benefit all of humanity. In 2019, it became a for-profit enterprise, allowing it to raise large amounts of capital from the likes of Microsoft, which has invested $13bn.

Altman thanked Murati for her contributions in response to her announcement. “It’s hard to overstate how much Mira has meant to OpenAI, our mission, and to us all personally,” he said. “I feel tremendous gratitude towards her for what she has helped us build and accomplish, but I most of all feel personal gratitude towards her for the support and love during all the hard times.”

Her successor has not been announced.

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Money

Exact date Aldi Halloween sweets land in stores including Haribo, Maoam and Reese’s – prices start from 49p

Published

18 mins ago

September 25, 2024

NewsAdmin

Exact date Aldi Halloween sweets land in stores including Haribo, Maoam and Reese’s - prices start from 49p

THIS is the exact date Aldi Halloween sweets will be stocked on the shelves – with prices starting at just 49p.

Haribo, Maoam and Reese’s will be in the mix in a treat for shoppers ahead of scary season.

Aldi has launched a Halloween rangeCredit: Aldi

The discount retailer is stocking the new range very soonCredit: Getty

The so-called “spooktacular” range is landing in stores on September 29.

Among the 49p deals, shoppers can snare Aldi’s new milk chocolate mouse.

Meanwhile, Aldi witches wands will set you back just 59p, while Scary Sweets (99p) and Flying Saucers (99p) are others under a pound.

Maoams will be available in three different variants – Stripes, Pin Balls and Joy Stixx, all £1.09 for a 140g packet.

A 140g packet of Stripes at Waitrose currently costs effectively the same price at £1.10, so it is still worth shopping around, particularly if you don’t have an Aldi nearby.

Haribo’s super mini mix – a 336g bag – will cost £2.39.

An Aldi statement said: “Shoppers are in for a treat this scary season as supermarket Aldi is launching a line-up of creepy candies with prices starting from 49p.

“Aldi’s range of spook-tacular Halloween sweets are available in stores from 29^th September.

“Shoppers had better be quick to get their hands on the treats, as with all Aldi Specialbuys, once they’re gone, they’re gone!”

It comes after Aldi shoppers were rushing to buy a dupe for a popular Cadbury’s dessert.

Dairyfine Pots of Choc, Aldi’s version of Cadbury’s Dairy Milk Pots of Joy are described as a “smooth and creamy dessert”.

One Aldi shopper posted a picture of the dessert on Facebook, which she said cost around £1.09-£1.19.

Speaking of Aldi sweets, shoppers have been left overjoyed after the supermarket’s iconic Toblerone dupe returned to shelves.

Fans of the bargain retailer have been pleading for the Specially Selected Swiss chocolate bar to make a comeback and it appears the supermarket has given in.

The blonde bar is seen as a family favourite with happy customers describing it as “lush” as they race into stores to grab one.

Each 100g pack cost is now priced at £1.69.

Each bar is packed with delicious ingredients from white chocolate, honey, almond, nougat and salted caramel pieces.

An actual bar of normal Toblerone will set you back a hefty amount with the smallest offering being a 200g bar for £4 at Tesco.

Halloween means big ranges of sweets arriving at storesCredit: Getty

How to save money on your supermarket shop

THERE are plenty of ways to save on your grocery shop.

save on your grocery shop.

You can look out for yellow or red stickers on products, which show when they’ve been reduced.

If the food is fresh, you’ll have to eat it quickly or freeze it for another time.

Making a list should also save you money, as you’ll be less likely to make any rash purchases when you get to the supermarket.

Going own brand can be one easy way to save hundreds of pounds a year on your food bills too.

This means ditching “finest” or “luxury” products and instead going for “own” or value” type of lines.

Plenty of supermarkets run wonky veg and fruit schemes where you can get cheap prices if they’re misshapen or imperfect.

For example, Lidl runs its Waste Not scheme, offering boxes of 5kg of fruit and vegetables for just £1.50.

If you’re on a low income and a parent, you may be able to get up to £442 a year in Healthy Start vouchers to use at the supermarket too.

Plus, many councils offer supermarket vouchers as part of the Household Support Fund.

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Business

Boeing staff report pressure to lower standards

Published

39 mins ago

September 25, 2024

NewsAdmin

Boeing staff report pressure to lower standards

Getty Images The rear of Boeing 737 fuselages outside the Boeing Co. manufacturing facility in Renton, Washington, US, on Monday, Feb. 5, 2024.

Fixing Boeing, the troubled US aerospace giant, is a “very long-term project”, the company’s top regulator said on Wednesday.

The head of the Federal Aviation Administration (FAA) made the comments to Congress, as lawmakers urged the agency to be tougher on the company to force the company to fix its problems.

Ahead of the hearing, Democratic lawmakers released the results of a damaging internal staff survey that Boeing conducted in May, which found that more than half of Boeing workers felt that “schedule pressures” had caused their team to lower their standards.

Less than two-thirds felt they had the training or tools and materials to do their work properly. Boeing said it knew it had work to do.

“We’ve taken important steps to foster a safety culture that empowers and encourages all employees to share their voice, but it will require continuous focus,” Boeing said in a statement.

“Under the FAA’s oversight, we are continuing to implement our comprehensive plan to strengthen Boeing’s safety management, quality assurance and safety culture.”

The safety and quality of the company’s planes have been in the spotlight since a piece of a new passenger plane broke off in mid-air in January.

The incident raised concern that the company had not done enough to improve its manufacturing processes and safety controls, despite promises made after two its planes were involved in fatal crashes five years earlier.

On Wednesday Senator Richard Blumenthal said that regulators needed to push the company more aggressively to make changes.

He said he was sceptical that the current plan for improvement adopted by the FAA and the company would make a difference, saying they looked like the company was “recycling” safety commitments it had made years earlier.

FAA Administrator Mike Whitaker faced questions about the agency’s oversight of Boeing

Getty Images FAA Administrator Mike Whitaker testifies before a Senate Commerce Committee hearing on "FAA Oversight of Aviation Manufacturing," on Capitol Hill in Washington, DC, on June 13, 2024. — FAA Administrator Mike Whitaker faced questions about the agency’s oversight of Boeing

His concerns about lax oversight were shared by some Republicans on the panel, who noted that whistleblowers from within Boeing were still reaching out to lawmakers with concerns about retaliation and efforts by the company to choose its inspectors.

“We need tough oversight,” Senator Josh Hawley said. “I want to make sure your agency is holding their feet to the fire.”

FAA Administrator Mike Whitaker said he felt the right rules were now in place to improve the company, pointing to an FAA order that limits Boeing to producing 38 aircraft a month and the agency’s demand that Boeing use better technology to track tools and materials.

“It’s a much more intensive level of engagement and we plan to maintain that indefinitely,” he said. “The goal here is a culture change at Boeing and that is a very long-term project.”

But Mr Blumenthal said that the production cap was part of a series of “half measures”, noting that Boeing was currently making far fewer aircraft than it could.

He criticised the 11 inspectors the FAA has sent to Boeing’s factory in Renton, Washington as “inadequate” and raised concerns that FAA was giving Boeing too much heads-up about regulator audits.

Mr Blumenthal said he thought there would be more effective ways to pressure the company to change, such as capping executive pay.

The hearing occurred as more than 30,000 factory workers in the Pacific northwest remain on strike over pay and other benefits.

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Money

I’m a single mum pinning all my hopes for buying a home & getting rich on my son, 14, becoming a pro footballer

Published

40 mins ago

September 25, 2024

NewsAdmin

I'm a single mum pinning all my hopes for buying a home & getting rich on my son, 14, becoming a pro footballer

A MUM is pinning all her hopes on buying her first home on her son becoming a professional footballer.

Terri-Anne Hamer, 38, says she is barely able to make it to the end of the month and is fearful she may never get on the property ladder.

Despite mortgage rate cuts making the path to owning a home more realistic, the single mum-of-three, from Leeds, admitted she is waiting on a miracle to be given the keys to her own gaff.

Single mum Terri-Anne Hamer says she will never be able to afford to buy a house unless her son becomes a famous footballerCredit: Facebook

“I’m in a situation where it’s just about getting through each month,” she told The i.

“A mortgage isn’t even in my mindset right now.

“It’s something I’d like to have, but I don’t think it’s ever going to be achievable for me, no matter how hard I work.

“The only way I can see myself ever affording a home is if I have a lottery win.

“Or if my 14-year-old son [Kemon] achieves his dream of getting signed up for Liverpool as a footballer.

“He always tells me: ‘When I’m older and get signed up as a footballer, I’m going to buy you a house. Even if I don’t get signed up, I’m going to look after you’.”

Teri-Anne, who is also mum to 11-year-old Amayah and AJ, eight, was taken away from her drug and alcohol-addicted parents and placed into care from an early age.

And despite nabbing a diploma in Youth and Community Studies and a masters in Criminology, she is still struggling to avoid eviction at the £700-per-month housing association property she rents.

“I’ve worked hard as a single mum and as a care leaver to overcome the odds. But even though I now have a masters and a BA behind me, I am just making ends meet,” she said.

“I can only work part-time as I have three children and I am also looking after another child who I took on after my mum passed away a couple of years ago.

“I am investing in my children and they are already reaching things I couldn’t have dreamed of at their age.

“They are living their dream and I am so proud. They are already beating the odds.

“Even though I might never be able to own a house or have a mortgage, I pray they will do it and that their generation will get to do what the rest of my family never did.”

Liverpool F.C Academy’s strict set of rules for players

Academy director Alex Inglethorpe has lifted the lid on the restrictions he has implemented at the club.

Player wages are restricted to a £50,000-a-year cap under the regulations.

Meanwhile, his “car clause” limits the engine sizes of player vehicles to 1.3 litres.

Finally, players must hand their phones in at 8.30am when they arrive at the academy and are not given them back until they leave for the day.

Explaining the rules, Inglethorpe told Jamie Carragher for the Telegraph: “It is a safety thing as much as anything.

“I don’t want boys who have just passed their test with these big chunks of metal, but I was also fed up seeing a car park full of Range Rovers.

“If anyone turns up with one of them, they are parking it next door.

“We have a pay structure which is fairly old-fashioned. We give them jobs to do. We tell them to hand their phone over at 8.30am and give them back before they go home.

“You have been a senior player. You know how it is when a young player comes into the dressing room. You want respect for the pathway.

“They have to earn what comes their way first. All the other stuff is fine later. To get there you have to do it on the pitch.”

INTEREST-ING

It comes after the Bank of England has opted to hold interest rates on Thursday after cutting them for the first time since 2020 last month.

At the Monetary Policy Committee’s (MPC) meeting, ratesetters at the BoE held the base rate at 5%.

The BoE raises or lowers its base rate, which dictates what interest rates are charged to banks, in order to control inflation.

By raising it, it is supposed to make the cost of borrowing more expensive and control spending, therefore driving down inflation.

The BoE started raising its base rate in December 2021 as the UK economy emerged from the coronavirus pandemic.

A succession of rate rises followed as the bank looked to slow rampant inflation brought on partly by soaring wholesale gas and electricity prices.

It has seen mortgage rates go up for millions of households – adding thousands of pounds to some bills.

But the upturn in the base rate has also seen rates on savings accounts pushed up.

With inflation slowing, economists are predicting the BoE will bring interest rates down next year.

The International Monetary Fund also previously predicted that the BoE will cut its base rate to 3.5% by 2025.

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Business

Masimo founder seeks $400mn payout after board ousting

Published

60 mins ago

September 25, 2024

NewsAdmin

Unlock the Editor’s Digest for free

The founder of medical technology manufacturer Masimo is demanding $400mn in payouts from his former company after being sacked as board chair.

Joe Kiani filed a lawsuit in California state court asking a judge to declare his employment agreement allows him to receive pay typically associated with a company sale. The company announced on Wednesday that Kiani was ousted by shareholders at the company’s annual general meeting last week. Shares rose more than 6 per cent in Wednesday trading after the announcement.

The move follows a bruising years-long tangle with activist investor Quentin Koffey and his $1.65bn firm Politan Capital.

Kiani said in his lawsuit that “ceasing to be Board Chair” entitled him to the vesting of 2.7mn restricted stock units, which at the current Masimo stock price is worth $360mn. Kiani also said he was owed a $35mn cash payment, representing twice his average salary and bonus over the past two years and the funding of a “rabbi trust”. Masimo’s current market capitalisation is about $7bn. Kiani declined to comment.

Kiani resigned as chief executive of Masimo after last week’s board election. In his resignation letter to the board demanding the payout, he wrote: “I am deeply disappointed by the way you have treated me and undermined my leadership and vision for the Company.”

Kiani’s current ownership stake is 8 per cent of Masimo’s outstanding shares, worth approximately $500mn. He told the Financial Times last week he would sell his Masimo shareholdings if he was deposed from the board.

Two directors elected last week by Masimo shareholders were nominees of Politan, which now has four of the six Masimo board seats. Politan, which owns 9 per cent of the company, sued Masimo in 2022 over the Kiani employment contract payouts, alleging the size represented a breach of the board’s fiduciary duties. The assigned Delaware state judge had criticised aspects of the payouts in a hearing but Politan dropped the lawsuit after Koffey was elected to the board.

Kiani founded Masimo in his Orange County, California, garage in 1989, and designed a market-leading pulse oximeter used by hospitals and other healthcare providers. But the company’s stock price has fallen 60 per cent since 2021 after revenue declines and poor acquisitions.

Politan declined to comment on Kiani’s lawsuit. During this year’s proxy fight it said it could seek to keep Kiani as board member to avoid the payouts and, regardless, the payout terms may not have been legally valid, per their previous Delaware lawsuit.

Masimo said in a press release on Wednesday that Michelle Brennan, a Politan-affiliated director who joined the board last year and is a former Johnson & Johnson executive, would become interim CEO and the company would look to separate its consumer wearables business.

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