Ex-Qantas boss Alan Joyce scores another $3.4m, with more to come

Qantas’s annual report has revealed former CEO Alan Joyce is still earning millions from the job he left more than a year ago.

Former Qantas chief executive Alan Joyce collected $3.4m for working just two months of the 2024 financial year, and there is still more to come next year under the airline’s long-term incentive plan, the airline’s latest annual ­report reveals.

The bulk of the payment was in the form of a $3.15m bonus, with the remaining $381,000 his salary for the period from July 1 to September 5 when he left Qantas.

The windfall came on top of a total of $14.9m Mr Joyce received in the 2023 financial year, following the axing of more than $9m in bonuses due to the controversies in which Qantas was embroiled.

Nevertheless Mr Joyce remained entitled to another $2.4m in deferred long-term ­bonuses, provided the Qantas share price stayed at its current level around $6.84, and the company met its performance goals.

New Qantas chief executive Vanessa Hudson saw her total salary fall from almost $6m in 2023 to $4.4m in her first year in the top job, due to the absence of a retention bonus paid the previous year.

In total, executive salaries fell from $35.4m in 2023 to $20.7m in the 2024 financial year following changes to the remuneration structure. The alterations were made after Qantas shareholders overwhelmingly voted down the remuneration report at last year’s annual general meeting, in response to poor operational performance, the unlawful sale of tickets on cancelled flights, the ­illegal outsourcing of its ground-handling workforce and the mishandling of Covid travel credits.

The changes included an increased weighting on customer outcomes from 20 per cent to 30 per cent for annual bonuses, and the introduction of “brand reputation” as a performance measure for long-term incentives.

Former Qantas CEO Alan Joyce with his successor Vanessa Hudson.

Qantas chairman Richard Goyder said the company had made significant progress over the past 12 months, but acknowledged that there was “much more to do to restore trust with cus­tomers”.

“We’ve seen strong improvement in on-time performance, customer satisfaction and reputation for both Qantas and Jetstar, and the group is performing strong financially,” Mr Goyder said. “It’s this financial strength that means we’re able to continue investing in new aircraft, improving the experience for our customers and our people.”

He said the board had listened to feedback on executive pay structure and had made a series of changes, adding that the “future for Qantas is incredibly bright”.

“Vanessa and her new leadership team continue to make good progress balancing the needs of customers, employees and shareholders,” Mr Goyder said.

“I wish incoming chair John Mullen and all Qantas Group employees all the best in the years to come.”

Mr Mullen was due to officially take over from Mr Goyder on September 16. The remuneration report rated Ms Hudson’s individual performance factor at 105 per cent, noting she had “met and exceeded expectations”.

Of particular note was her “clear action to address customer pain points, including on-time performance, loyalty member redemption access and in-flight and digital experience”.

“A voice of customer program has also been embedded across all segments to drive action and continuous improvement,” the report said.

Her renewal of the executive team was also praised, including the appointment of a new chief people officer, internal promotions to key leadership roles and increasing female representation.

Ms Hudson “developed clear leadership values and an inclusive culture focused on performance”, the report said.

Last month, Ms Hudson revealed a $2.08bn underlying profit before tax at Qantas, down on the previous year’s record $2.47bn ­result.

The lower figure was attributed to moderating airfares and more spending on customer initiatives in an effort to rebuild Qantas’s reputation and standing with travellers. The remuneration report will be voted on by shareholders at the October 25 AGM. Last year the report received a “first strike”.

Under corporate law, a strike occurs if more than 25 per cent of shareholders vote against a company’s remuneration report.

In Qantas’s case, 83 per cent of shareholders objected to the 2023 report based on the high rates of executive pay and criteria for awarding bonuses.

In the event the report was again voted down by 25 per cent or more, the board of directors could face a spill motion within 90 days.

Proxy advisory firms were expected to deliver their recommendations to shareholders ahead of the AGM in coming weeks.

Qantas shares closed flat at $6.84 on Thursday.