Former Qantas CEO Alan Joyce‘s bonuses cut by $9.3m after governance review

Former Qantas chief executive Alan Joyce will have his bonuses slashed by more than $9m.

The decision comes as the carrier has committed to implementing all 23 recommendations made in its review of key governance matters and was revealed in an update on 2023 financial year executive remuneration.

Mr Joyce, who left his role as Qantas head in September last year, will have his 2023 remuneration reduced by $9.26m.

His bonuses were withheld amid mounting pressure from investors following a string of controversies, including the illegal sacking of 1700 workers, the selling of tickets on already cancelled flights and allegations of anti-competitive behaviour.

Mt Joyce will be left with $1.8m.

In a statement on Thursday, Qantas attributed Mr Joyce’s salary to a number of mistakes that led to “considerable harm” across multiple areas of the company.

“The events that damaged Qantas and its reputation and caused considerable harm to relationships with customers, employees and other stakeholders were due to a number of factors,” the statement read.

Following a settlement with the Australian Competition and Consumer Commission, the carrier admitted to “misleading customers in relation to flight cancellations processes” and with the approval of the Federal Court, will pay a $100m penalty.

Qantas also agreed to a $20m customer remediation program.

Combined with the settlement, Qantas took into account the finding of the governance review in making the changes to executive’s bonuses.

“While there were no findings of deliberate wrongdoing, the review found that mistakes were made by the board and management which contributed to the group’s significant reputational and customer service issues,” the airline said.

“In reaching these decisions, the board has considered the individual and collective accountability of members of the group management committee.”

Incoming Qantas chairman John Mullen said it was important that the board learnt from previous mistakes.

“It’s important that the board understands what went wrong and learns from the mistakes of the past as it’s clear that we let Australians down,” he said. .

“As the national carrier it is our duty to make sure we always act in the best interest of stakeholders and hold ourselves to the highest level of accountability.”

Qantas confirmed other executives, including current chief executive Vanessa Hudson, would receive a 33 per cent reduction in short-term bonuses.

The review’s author Tom Saar said many of the actions taken by Qantas in response to the recommendations “are complete or well under way”.

“While some of the recommendations will take some time to embed across the organisation, if the current momentum is maintained, my expectation is that tangible benefits will occur within a short period,” he said.

The Transport Workers Union said the review’s findings were confirmation of the airline’s “colossal leadership failing”.

“This review is important because it verifies what workers, passengers and the Australian community have been saying for years,” TWU national secretary Michael Kaine said.

“Alan Joyce was instrumental in the destruction of a beloved Australian icon and the degradation of aviation jobs and standards over the span of 15 years. The millions that have been withheld from Joyce and the board are a drop in the ocean compared to what they’ve already received, but it is the right decision.”

Mr Kaine said while some signals of positive change were visible, a “deeply embedded culture of antagonism towards workers is not going to change overnight”.

“The scale of devastation wrought by Alan Joyce is immense and will require a seismic shift in culture and attitudes,” he said.

Mr Kaine called on the airline to provide 1700 illegally outsourced Qantas ground staff with compensation so that the company can finally begin a new chapter.

“This is a company that seems to be eager to turn into a new chapter but hasn’t yet turned into a new chapter,” he said.

“Over four years after their illegal sackings these workers are yet to receive a cent and the CEO of Qantas keeps sending down armies of lawyers to the Federal Court to argue they should receive nothing.”

“That doesn’t sound like a new leaf has been turned.”

Mr Kaine called for a Safe and Secure Skies Commission to be put in place “as a matter of urgency” to ensure the stability of Australia’s aviation sector.