Former Qantas boss Alan Joyce has been left dejected after having his bonus cut. More than 9 million dollars.
The former chief executive was pictured walking his dog on the northern beaches the day after a scathing review blamed him for damaging the airline’s reputation last week.
Mr Joyce, wearing a black quilted Kathmandu jacket, cotton tracksuit bottoms and a cap, appeared to be lost in thought as he listened to his AirPods while sitting on a beachside bench.
He may have been regretting the damning results of an investigation commissioned by his former employer last year amid intense criticism from clients, 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 former McKinsey partner Tom Saar.
‘This contributed to a top-down culture, which influenced empowerment and a willingness to challenge or ‘speak up’ about concerning issues or decisions.’
Former Qantas boss Alan Joyce cut a dejected figure after his bonus was slashed by more than $9 million
The former chief executive was pictured walking his dog on the northern beaches the day after a scathing review blamed him for damaging the airline’s reputation last week.
Mr Joyce, wearing a black quilted Kathmandu jacket, cotton tracksuit bottoms and a cap, appeared to be lost in thought as he listened to his AirPods while sitting on a beachside bench.
It concluded that while there were no deliberate findings of wrongdoing, the airline’s management errors caused “significant reputational and customer service issues.”
As a result, the national carrier took the decision to cut Mr Joyce’s bonus.
An update to Qantas’ 2023 financial year executive remuneration last Thursday revealed 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.
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.”
Mr Joyce was chief executive of Qantas for 15 years before resigning in September last year (pictured with Prime Minister Anthony Albanese and his wife Jodie Haydon)
Ms Hudson issued an apology to customers after taking the reins as Qantas CEO last year.
He acknowledged that Qantas had work to do to regain the trust of travellers.
“I know we’ve disappointed you in many ways,” he said.
‘We have not delivered as we should have and have often been difficult to deal with.
“We understand why you are frustrated and why some of you have lost confidence in us.”
Ms Hudson said the airline was determined to fix the problems, improve the passenger experience and better support its staff.
“We want to get back to being the national airline that Australians can be proud of,” he said.
We understand that we need to regain your trust, not with what we say, but with what we do and how we behave.
