162 Effective People Management to cutting payroll costs. A pilot scheme produced savings of £37,964 in payroll costs for the company in one quarter. Offer shares in lieu of pay: In June 2009 British Airways (BA) pilots voted on a deal taking a pay cut in exchange for company shares, in order to cut payroll costs at the airline. The pilots took a wage cut of 2.61 per cent on their basic pay as well as a 20 per cent cut in flying-time allowances. These changes will generate £26 million of annual savings for BA, in exchange for which the pilots were given BA shares worth £13 million if certain company targets are achieved. The pilots have to hold these shares for three years, until June 2014, after which they can sell or hold onto them as they wish. Reduce pension benefits: In July 2009 Marks & Spencer announced changes to its final-salary pension scheme and early retirement arrangements in a bid to cut operating costs by between £175m and £200m. Annual increases in pensionable