$10m of Joyce’s bonus at risk in bid to appease investors
Alan Joyce could be paid $23.6 million for his last year at Qantas, but the airline says some $10 million in bonuses for its former chief executive are up in the air as it grapples with shareholder anger and allegations it wrongly sold thousands of tickets on flights it had already decided to cancel.
The airline said an $8.36 million long-term incentive payment could be clawed back at the board’s discretion, while a $2.2 million short-term bonus would not be paid until there was more information about the Australian Competition and Consumer Commission’s claim against the company.
A further $6.1 million, which is contingent on the company hitting performance targets over the next two years, is also subject to a clawback at the Qantas board’s discretion. If paid, it would take Mr Joyce’s total final payout to $29.7 million.
Alan Joyce with Qantas’ new chief executive, Vanessa Hudson, and the airline’s chairman, Richard Goyder in May. Rhett Wyman
The short-term bonus has been reduced to reflect the customer discontent, Qantas chairman Richard Goyder said. “This part of the scorecard was judged at zero… and this had a corresponding impact on senior executive pay,” he said.
That figure has dropped by $500,000 to $2.2 million because the board decided on an additional 20 per cent cut, Mr Goyder added.
Qantas faces not only a legal claim from the ACCC, but will have to compensate 1700 workers, which the High Court last week found it had illegally sacked. A decision to block Qatar Airways from flying more services into Australia, supported by Qantas, is also under intense scrutiny at a Senate inquiry which is expected to call several of the airline’s executives.
The bulk of Mr Joyce’s bonus that remains in question – an $8.36
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