(Trinidad Express) Trinidad Government ministers yesterday defended a US$33,000 (TT$211,000) monthly compensation package for Caribbean Airlines chief executive officer (CEO) Michael DiLollo, saying this was keeping with salaries paid to former CEOs and was necessary to acquire that level of expertise.
Speaking during the Prime Minister’s question time in the Parliament on Wednesday, Prime Minister Kamla Persad-Bissessar disclosed that Canada born DiLollo received a salary of US$28,000 and a housing allowance of US$5,000.
The question was posed by Independent Liberal Party (ILP) leader Jack Warner who issued a release yesterday saying the Prime Minister was vague in her response.
Speaking at the post Cabinet news conference yesterday at the Office of the Prime Minister, St Clair, Trade Minister Vasant Bharath and Finance Minister Larry Howai defended DiLollo’s salary.
Bharath pointed out that former CEOs received salaries equivalent to that paid to DiLollo.
He noted that Peter Davies received a US$34,000 monthly package while Phillip Saunders received US$33,500.
Bharath said former CEO Ian Brunton was paid TT$103,000 a month and Robert Corbie TT$120,000 a month.
The Express pointed out that Warner stated that figures were not provided for DiLollo’s travel allowance, entertainment allowance, telephone allowance etc.
Bharath said that Warner asked specifically about DiLollo’s salary which was US$28,000 a month.
He said he only currently had information on DiLollo’s salary and US$5000 housing allowance but disclosed that DiLollo also received a travelling allowance of US$1600.
Bharath said the airline industry is one that is under significant competitive pressure worldwide where there has been mergers and acquisition aimed at reducing costs.
He said it is necessary to pay what is expected to lure people with expertise to work at CAL.
Bharath said it was clear that this country may not have had the expertise locally and therefore the board felt it was best to source someone from abroad.
‘Positive Impact’
Howai said DiLollo has had a positive impact in CAL and is developing a plan to turn the non-profitable airline around.
“The new CEO since he’s come on board has really taken charge of the company. He’s done a lot in terms of improving the morale of the staff and the output and the overall performance of the organisation,” he said.
“He has developed a new strategic business plan with some areas of focus for us to be able to turn around the airline, he’s proposing to make that presentation to us in the first week of December, when we receive that we will be in a clearer position going forward in the new year of January to December in terms of what are the strategic initiatives we will be putting in place to deal with the many issues that will need to be addressed to turn the airline around,” said Howai.
Filed: 21st November 2014
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