Loyalty lolly may hold key Air NZ players

Air New Zealand may offer "golden handcuffs" to its top managers to keep them on board in the event of a major ownership change.

Retention schemes are frequently offered to key company players to ensure their loyalty and expertise stays when takeovers are threatened or new owners sought.

An Air New Zealand retention scheme has been drafted for the board's remuneration committee.

Air New Zealand came under pressure when managing director Jim McCrea resigned at short notice as the airline acquired Ansett Australia. Mr McCrea was expected to oversee the start of the integration between Air New Zealand and Ansett Australia's operations.

Ansett Australia head Rod Eddington was expected to become chief executive of Air New Zealand Ansett, but Mr Eddington instead resigned to take up the top job at British Airways.

Air New Zealand chairman Sir Selwyn Cushing, who has stepped aside while the airline's ownership issues are resolved, had to run both companies while a new chief executive was sought.

The proposed retention scheme extends beyond Gary Toomey's position as president and chief executive of the airline.

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