Former Qantas Airways CEO Alan Joyce departed the firm with an 872% salary rise, citing long-term incentives that had been due for years. However, the corporation said that it had reduced and withheld large incentives. Joyce stepped down amid a legal battle with the airline.
The company’s annual report, published on Wednesday, said “Alan Joyce, who retired early this month after a regulator lawsuit accused Qantas of selling tickets on thousands of already-cancelled flights, took home A$21.4 million in the 2023 financial year.”
“Most of the amount was share-based incentives that Joyce was allowed to cash in after they vested“.
According to the article, Qantas reduced Joyce’s extra short-term incentive by one-fifth of the A$2.7 million available and deferred it awaiting the resolution of two cases that might result in large penalties and more reputational turmoil for the firm.
“In recognition of the customer and brand impact of cumulative events, the Board has applied its discretion to reduce short-term incentives” for Joyce and other executives, Chairman Richard Goyder said in the report.
According to the article, the business was able to recall A$8.4 million in share-based compensation Joyce received throughout the year but is not yet permitted to sell. It might also “claw back” Joyce’s unvested stock bonuses, which are presently worth A$6 million.
Joyce’s most recent compensation covered his 15 years as CEO of the corporation that dominates Australian air travel.
Qantas recorded a record yearly profit in the fiscal year ending June 2023, but it was overshadowed by public indignation over flight disruptions and employee unease after the layoff of 1,700 ground personnel during the COVID period.
The airline was also sued by the Australian Competition and Consumer Commission for allegedly violating consumer law by selling tickets to 8,000 flights that had already been canceled when borders reopened in mid-2022.
This month, the High Court ruled that the 2020 layoffs were unconstitutional. Qantas must return to the Federal Court to establish what fines and compensation it must pay to impacted employees.
“Alan openly recognized that there were elements of the COVID restart that could have been managed better and took action to start turning that around,” Goyder wrote in the report.
