Newly-elected chief executive of Virgin Blue may be earning much more for a year than the previous CEO.

John Borghetti, who assumed the position of chief executive of Virgin Blue, may be earning more than $4.5 million during his first year, a $1.8 million more than what his predecessor Brett Godfrey used to receive.

Under his contract, Mr. Bofthetti will receive an annual salary of $1 million, with an additional cash bonus of $1 million if he succeeds its unspecified short-term performances.

Mr. Borghetti will also be receiving $2.5 million in the first year of his job if he delivers its long-term incentive targets. His long-term bonus will average to $1.5 million for the next three years once he finish its projects.

Figures show that Mr. Borghetti will earn $600, 000 a year more than Mr. Godfrey.

His stint as former senior of Qantas earned him a total of $4.93 million in his last year with the airlines, with an additional $1.6 million in termination benefits.

According to his new contract obtained by Sydney Herald, Mr. Borghetti would buy shares in the airline worth $200, 000, while receiving a co-investment incentive of $400,000 worth of performance rights if Virgin Blue's share price reaches 25 per cent by 2013.

Virgin Blue's shares dipped to 1.5 cents lower at 50.5 cents in the afternoon.

Neil Chatfield, chairman of Virgin Blue, explained that Borghetti's incentives was decided by the company's shareholders.

Chatfield told media in earlier reports that Virgin Blue was delighted for Borghetti to join the company.

“He is a highly regarded executive with deep aviation experience and insights, proven strategic capabilities and strong marketing credentials. Nobody knows the market better and he is passionate about the aviation business,” he said.

Mr. Borghetti's role as CEO became official as of May 8, replacing outgoing Mr. Godfey.

Mr. Borghetti resigned from Qantas in May 2008 after 36 years at the carrier.