- Alan Joyce’s bonus was reduced by $9 million
- Mr Joyce resigned as head of Qantas in September
Former Qantas boss Alan Joyce’s bonus has been slashed by more than $9 million after a scathing review blamed him for damaging the airline’s reputation.
The national carrier made the decision after a review found that mistakes by the airline’s management caused “significant reputation and customer service issues.”
An update to Qantas’ 2023 financial year executive remuneration revealed on Thursday that Joyce had his $8.36 million long-term bonus for 2021-2023 removed and his $900,000 short-term incentive cut by a third.
Mr Joyce, who was chief executive of Qantas for 15 years before resigning in September last year, was left with just $1.8 million.
The airline’s board commissioned a review last year amid intense criticism from customers, investors and politicians.
The damage to Qantas’ reputation was found to be largely due to “too much deference to a long-serving CEO”.
“The group had a ‘command and control’ leadership style with centralized decisions and an experienced and dominant CEO,” concluded the report, written by McKinsey partner Tom Saar.
Former Qantas boss Alan Joyce (pictured) has seen his bonus slashed by more than $9m after a scathing review blamed him for damaging the airline’s reputation.
Mr Joyce, who was chief executive of Qantas for 15 years before stepping down in September last year, was left with just $1.8 million.
‘This contributed to a top-down culture, which influenced empowerment and a willingness to challenge or ‘speak up’ about concerning issues or decisions.’
However, no deliberate findings of irregularities were found.
Qantas has been plagued by a litany of scandals in recent years, including the unlawful dismissal of nearly 2,000 airport staff, cancelled flights, lost luggage and allegations it was ripping off customers with exorbitant prices.
The scandal prompted Joyce to bring forward his retirement plans and he was replaced by former chief financial officer Vanessa Hudson.
In June last year, Joyce also sold $17 million worth of Qantas shares, just days after the airline provided details of cancelled flights to the Australian Competition and Consumer Commission.
Mr Saar’s report criticised the move, concluding that “there should be additional scrutiny of proposed share transactions by the CEO and members of the group’s leadership team”.
Qantas’ incoming chairman John Mullen said Joyce’s pay cut and sweeping reforms indicated the airline was heading in the right direction.
“It is important that the Board understands what went wrong and learns from past mistakes as it is clear we let the Australian people down,” Mullen said.
“As a national airline, it is our duty to ensure that we always act in the best interest of our stakeholders and maintain the highest level of accountability.”
