Council leader defends £200k pay rise for airport CEO

By Tom Cramp - Local Democracy Reporter

6th Jul 2022 | Local News

Birmingham Airport CEO Nick Barton has received a 49% pay rise whilst 43% of airport staff have been laid off due to the pandemic
Birmingham Airport CEO Nick Barton has received a 49% pay rise whilst 43% of airport staff have been laid off due to the pandemic

The leader of Solihull Metropolitan Borough Council has defended Birmingham Airport CEO Nick Barton after it was revealed he received a 49 per cent pay rise - meaning he now earns almost £600,000 a year.

Cllr Ian Courts backed the airport's management and said the airport's survival over a difficult last few years has been "in no short measure" down to the chief executive. 

The pay rise has seen Nick Barton's salary soar from £399,000 to £595,000 whilst more than two fifths of all airport staff were laid off during the pandemic.

Staff shortages at the airport have been blamed recently for lengthy delays and cancelled flights.

Speaking at a full council meeting on Wednesday, Cllr Courts said: "In terms of the chief executive's pay, this will be in line with market rates. Our airport has gone through a tough and challenging time in the last few years and its survival has been in no short measure down to the chief executive.

"It's vital that the airport remains strong and is led well.

"I was with the chief executive at the time of the Afghan evacuation and watched him take direct and personal charge of operations to help the thousands of refugees that came through our borough and the airport.

"The calibre of leadership I saw was exceptional on that occasion."

Solihull Council is a shareholder at the airport and together with six other West Midlands councils, they own a 49 per cent stake in the airport's holding company, Birmingham Airport Holdings Limited.

As a shareholder, the council receives dividends and has some say in how much the chief executive is paid.

Cllr Courts continued: "Prior to the Covid-19 pandemic, we were receiving a good dividend return from our shareholding, and when passenger numbers revert back to pre-pandemic levels, further dividends will be received.

"The dividends from the airport have supported our finances and indeed our council services on a number of occasions.

"It is important that we retain what influence we can with the airport, albeit as the smallest shareholder. We would not want that influence to be passed on to someone else."  

Nick Barton's case is not an isolated one; airport bosses across the country have seen their salaries jump in recent times.

The chief executive of Heathrow saw his pay rise 85 per cent to £1,499,703 last year, while the chief executive of Manchester Airport Group, which also includes Stansted and East Midlands Airport, enjoyed a 25 per cent pay rise to £2,500,000.

Green Party member Cllr Maggie Allen asked Cllr Courts: "The CEO's pay is 30 times more than the lower-paid airport employees. How does this address the inequality issues that we all maintain are so important?"

"We do need a vibrant airport," she continued.

"But the £200,000 extra paid to the CEO, would it not be better used to make lower-paid positions at the airport more attractive and do something to address the resource shortage that is affecting travel plans? You say that it's all down to the airport but as shareholders, you vote on that, so you do have something to say about it."

Cllr Courts replied: "It really worries me if there's a suggestion that because we are a shareholder, we should manipulate that to interfere with the sound management of our airport. I appreciate that inequality exists in the world but we need a vibrant airport that will contribute to the economy, jobs, employment, living standards and the whole region. 

"Ours is a small shareholding, we don't control the airport," Cllr Courts concluded. "Roughly half is controlled by a pension fund. But it concerns me that we are suggesting we downgrade the pay of one of our major employers. 

"The effect of that will be not attracting the calibre of management that you need. We have gone through exceptional times at the airport and the management there has done an exceptional job." 

(Header image by Elliot Brown via geograph.org.uk)

     

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