BRITISH Airways is offering employees a bigger share in profits through share bonus
schemes after making an extra pay-out provision in the first quarter.
Employees who take shares rather than cash will get an extra 20pc bonus. BA says the additional pay-out will increase the advantage of holding tax-free profit sharing shares for the maximum five-year period.
Last year BA staff qualified for a pay-out equivalent, on average, to three weeks pay after the group made pre-tax profits of £327m. In 1995-96 it is on course for record profits after setting a new first-quarter peak of £135m, but the cut-off point for the start of profit share has been set higher.
Employees will start benefiting when pre-tax profits, excluding asset disposals and other exceptional items, tops £269m. BA will pay one week's basic pay for every £100m of profit above £269m.
Robert Ayling, managing director, said the profit threshold had been set at a level which enabled the board to optimise dividends for shareholders as well as distributing a fair proportion of profits to employees.
