International Consolidated Airlines Group SA Chief Executive Officer Willie Walsh earned close to 5 million pounds ($8.36 million) in 2013 after base pay frozen at 825,000 pounds was swollen by performance-based awards.

Walsh got a 1.3 million-pound bonus and a 2.6 million-pound long-term incentive, as well as pension benefits, according to IAG’s annual report published today. His salary, voluntarily capped for the past two years, was lifted 3 percent to 850,000 pounds for 2014, though the raise will go to charity, IAG said.

IAG returned to overall profit in 2013 as North American routes led to an earnings surge at its main British Airways unit and a recovery plan curbed losses at Spanish business Iberia. Walsh is cutting as many as 3,000 jobs as the group targets an operating profit of 1.8 billion euros in 2015, with Iberia set to turn a profit in the current year, he said last month.

“Financially, we’ve made very good progress and changes we’ve made in 2013 will also bring benefits this year,” Walsh said in the report. “While I’m pleased with the performance, I don’t think it’s enough, particularly when you think of the amount of investment we’re planning.”

BA chief Keith Williams earned 3 million pounds, up from 1.36 million pounds. Former Iberia counterpart Rafael Sanchez- Lozano got 2.83 million euros ($3.9 million), including a 1.6 million-euro termination payment after he left the company in March by what IAG said at the time was “mutual agreement.”

For 2014, London-based IAG will switch to using group operating profit to determine a bonus accounting for two-thirds of Walsh’s annual incentive award, having previously based it on BA operating profit and Iberia cash flow, it said today.

The company’s performance share plan will remain based 50 percent on earnings per share and 50 percent on the stock’s gains relative to the MSCI European Transportation Index.

IAG more than doubled in price last year and has added 12 percent so far in 2014, for a value of 9.14 billion pounds.

Editors: Christopher Jasper, Benedikt Kammel. To contact the reporter on this story: Kari Lundgren in London at To contact the editor responsible for this story: Benedikt Kammel at 

Photo Credit: Chief Executive Willie Walsh of IAG attends a news conference in London November 17, 2011. Suzanne Plunkett / Reuters