Qantas Slashes Former CEO Alan Joyce's Exit Pay By AU$9.26 Million

Australia's airliner Qantas announced it will slash the exit pay of former chief executive Alan Joyce by AU$9.26 million after an external review held him responsible for measures that affected the company's reputation and services.

He will lose AU$8.36 million worth of Qantas shares, based on its current share price, while his short-term incentive bonus will be cut by 33% to AU$900,000, ABC News reported.

At the time of his resignation from Qantas, last September, Joyce's remuneration was inclusive of salary and shares worth about $23.6 million.

Despite the cut, Joyce will take home more than AU$12 million for the 2023 financial year. As his 15-year stint in Qantas ended, he took home a whopping AU$125 million as his total salary package.

The Qantas board stated that even though there were no deliberate wrongdoings, the external review pointed to the mistakes made by the board and management that contributed to the company's reputation and impacted customer services, at the end of his tenure in the company.

In October 2023, the company launched a review of governance matters, under business adviser Tom Saar, leading to 32 recommendations, Sky News reported.

In the last few years, the airline has been hit by a series of scandals. After accusations of price gouging, sacking 1,700 ground staff in 2020, and most recently selling "ghost flights," analysts warned the company about losing its reputation.

The report specifically focused on the group's leadership, which it described as a "command and control" style, making centralized decisions under a dominant CEO.

"Leadership culture is part of the root cause dynamic that has underpinned the events under review," the report said.

The report also criticized Joyce's action of selling AU$17 million worth of Qantas stock after the Australian Competition and Consumer Commission demanded information about the airline's illegal ghost flights.

Incoming Qantas Chairman John Mullen said the board's decision to cut Joyce's pay indicated the airline was moving in the right direction after letting down the people.

"It's important that the board understands what went wrong and learns from the mistakes of the past as it's clear that we let Australians down," Mullen said. "As the national carrier it is our duty to make sure we always act in the best interest of stakeholders and hold ourselves to the highest level of accountability."

The Qantas board will also cut the short-term bonuses for current and former senior executives by 33%.