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Lance Gokongwei, Cebu Pacific execs to jack up pay by 30% to P284M after spending P254M for retrenchment

Cebu Pacific expects the airline business to be as bad as the previous year but it won’t stop the budget airline’s management from giving themselves a sizable hike in pay and bonuses this year.

READ: Ownership culture: Lance Gokongwei allocates P552M stock perks to keep old, attract new talents in Cebu Pacific

Based on its financial report, Cebu Pacific president and CEO Lance Gokongwei and the rest of the airline’s top management would get a combined P283.799 million in compensation and bonus package.

This is 30 percent more than the P216.92 million received by Gokongwei and his team in 2020.

The 2021 pay and perks package is slightly lower than the P286.826 million the management team received in 2019.

Roughly 40 percent of all compensation and bonuses are accounted for by Gokongwei and Cebu Pacific’s other top four executives – Andrew L. Huang (chief finance officer), Alexander G. Lao (chief strategy officer), Jose Alejandro B. Reyes (VP), and Michael Ivan S. Shau (chief operations office).

This year’s executive pay is 12 percent bigger than the P254 million total benefits granted by Cebu Pacific to the employees it retrenched in 2020 as part of “right sizing measures undertaken to navigate the current environment brought about by the COVID-19 pandemic.”

Cebu Pacific laid off over 800 employees in August which left it with 2,662 full time employees by the end of 2020.

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