Before retiring, Alan Joyce, ex CEO, Qantas Airways, claimed incentives that he said had been long pending, which amounted to a whopping total of 872 per cent hike in pay! The airline, however, reportedly held back significant bonuses. Yet, Joyce is said to have earned A$21.4 million in FY 2023.
The company’s recently-published annual report said Joyce had retired in early September, post a regulator case that was filed alleging that in 2022 Qantas Airlines sold tickets on about 8,000 flights that were already cancelled. This was a violation of consumer laws for which the airline is facing an Australian Competition and Consumer Commission case.
The majority of the amount was in the form of share-based incentives that Joyce was permitted to encash post vesting.
The airline also reduced Joyce’s short-term bonus by one-fifth of the available A$2.7 million, holding it back amidst the pending legal cases which may cost Qantas a lot in terms of fines and harm to the brand image.
The company managed to take back A$8.4 million worth of share-based bonuses that Joyce could claim in FY 2023 but cannot sell. The airline may also consider withdrawing Joyce’s unvested stock bonuses that are presently worth A$6 million.
While Qantas posted significant annual profits, the achievement was almost negated due to the public backlash received due to the cancelled flights and the layoff of more than 1,500 employees during the pandemic.