Beddoe's paycheque hacked as WestJet hits turbulence
Lisa Schmidt
Calgary Herald
Wednesday, March 30, 2005
WestJet Airline Ltd.'s chief executive Clive Beddoe's paycheque was trimmed last year as the Calgary-based discount carrier flew into the red for the first time, according to regulatory filings.
In 2004, Beddoe earned $356,125, according to an information circular filed Tuesday. That included a salary of $234,000, a bonus of $75,260 and $46,865 in other compensation. He was also granted stock options totalling 60,837.
That compared to $609,597 in 2003, which included a $220,000 salary, a $105,054 bonus and $43,992 in other compensation. He also received 85,613 stock options. As part of a previous agreement, he also earned $240,551.
WestJet lost $17.2 million in 2004, compared to a $60.5 million profit in 2003. It was the first time the discount airline, Canada's second-largest carrier, failed to make money since it began in 1996.
The loss included a $47.6-million writedown to replace older, fuel-guzzling jets faster than planned.
After the disappointing earnings, Beddoe said he would cut his 2005 salary to $1.
The airline faced record fuel costs and tough competition from a renewed Air Canada and discount rivals Jetsgo and Canjet last year. The carrier, which also lost money on its new U.S. routes, also remains locked in a legal battle with Air Canada and Jetsgo over corporate espionage allegations.
WestJet's prospects brightened earlier this month after Montreal-based Jetsgo, the country's third-largest carrier, filed for bankruptcy protection and stranded 17,000 passengers.
WestJet shares have climbed nearly 40 per cent since Jetsgo's announcement on March 11. In trading Tuesday, the shares fell 49 cents to $15.50 on the Toronto Stock Exchange.
lschmidt@theherald.canwest.com
© The Calgary Herald 2005