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Qantas could withhold $16m in bonuses from Joyce

written by Jake Nelson | June 19, 2024

Former Qantas CEO Alan Joyce speaks at a press conference at Sydney Airport. (Image: Jake Nelson)

Qantas has reportedly called in a consultant to advise whether former CEO Alan Joyce should receive an estimated $16 million in bonuses.

The Australian has reported that Colin Carter, former strategy chief for Boston Consulting Group, has been asked by the board to help determine whether Joyce is eligible for performance-dependent long-term bonuses of around $14 million and short-term bonuses of around $2.2 million.

Carter is understood by the newspaper to be interviewing Joyce, some of his executives, and certain board members as part of the process.

In a statement, Qantas said some short-term executive bonuses had already been withheld for the 2023 financial year, with court actions by the ACCC and around illegal outsourcing of ground workers factoring into the decision.

“An independent review into these matters and a broader review of governance was commissioned by the board,” the Flying Kangaroo said.

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“These will be considered in the coming months and any outcome in relation to executive remuneration will then be shared.”

Joyce earned $21.4 million in the 2022–23 financial year, $8.3 million of which was subject to clawback if the board deemed it necessary.

In a statement last year, now-outgoing Qantas chair Richard Goyder said the Flying Kangaroo was suffering “an acute loss of trust from the community, and accumulated disappointment from customers”.

“The scorecard that determines short-term incentive payments has a number of financial and non-financial measures, including safety, customer satisfaction and emissions reduction,” he said.

“While customer satisfaction levels improved during the year, they are well below where they should be. As a result, this part of the scorecard was judged at zero out of a possible 20 per cent and this had a corresponding impact on senior executive pay.

“While the ACCC’s recent allegations are untested, the Board understands shareholder and community concerns about them coinciding with significant executive pay outcomes. As part of good governance, after applying the 20 per cent reduction the Board will withhold the balance of the FY23 short-term incentive for senior executives while this matter progresses.

“There are already clawback provisions on significant amounts of remuneration awarded but not yet released that would be used if significant misconduct was ultimately found.”

Qantas has been contacted for comment.

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Comment (1)

  • As uncouth and unpalatable bonuses in favor or not for AJ may seem the facts are that his employment contract identifies if and when they are paid; – one can’t whinge after the fact. Further expenditure on more consultants does little to calm the process rather just to modify the storm waters lapping at Mahogony Row. Move on folks, we won’t move forward if we keep looking back!

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