Qantas investors expect action on exec pay even as airline fights ACCC
Investors say they expect the Qantas board to act on executive pay despite the airline revealing plans to fight the competition watchdog’s claims it misled and deceived customers, blaming systems errors and saying nearly all customers were eventually rebooked on new flights.
One of the airline’s biggest superannuation investors, HESTA, warned the “board and management has a long road to walk to regain trust and confidence of stakeholders including investors”.
Qantas has made millions of dollars in executive payments contingent on the outcome of the ACCC claim against the airline. Oscar Colman
“Fully explaining their decisions in the [Australian Competition and Consumer Commission] case is important, equally though we expect Qantas to strike a genuine balance between the interests of its customers, shareholders, and broader stakeholders,” HESTA chief executive Debby Blakey told The Australian Financial Review. “It is this balance that is material to the long-term value and reputation of the company.”
Ms Blakey said HESTA has already expressed its concern to Qantas “regarding the quantum of remuneration paid to former CEO Alan Joyce”.
“We note that the short-term incentives for the financial year 2023 period remain outstanding, and we encourage the board to reflect on the potential detriment to the long-term value of the company when finalising these.”
Qantas chairman Richard Goyder told shareholders this month that the board would withhold up to $14.4 million in bonuses due to be paid to Mr Joyce until the outcome of legal proceedings with the ACCC was made clear.
The ACCC has alleged that the carrier deceived customers when it sold tickets for more than 8000 flights that it had already decided to cancel.
On Monday,
Read more on afr.com
