Value of Qantas CEO Alan Joyce’s pay deal at almost $13m

Qantas chief executive Alan Joyce has seen the value of his pay packet surge to almost $13 million.

Qantas chief executive Alan Joyce at the Qantas HQ in Sydney. Picture: John Feder.

Qantas chief executive Alan Joyce has received a bumper 50th birthday present, with the value of his pay packet surging to almost $13 million following a dramatic turnaround in the airline’s profitability.

Mr Joyce received $13m ­including pay, incentives and ­entitlements, and his largest short-term cash bonus of $3.3m, for the year to June 30.

His total pay was up 9 per cent on the previous year’s $11.9m and topped the salaries of the chief executives of the nation’s big four banks. CBA boss Ian Narev took home $12.3m last year, the bulk of it as a $8.8m base salary.

Mr Joyce, who celebrated his 50th birthday on June 30, has ­received cash bonuses above $5m in the past two years after not receiving an annual bonus in 2014 because of the airline’s lacklustre performance.

Qantas posted a stunning $2.8 billion loss that year and ­requested a government handout. The group’s share price has since recovered from $1.35 to $3.26. This year it reported a record $1.52bn profit driven by the lower oil price and cost-­cutting.

“They are seeing the fruits of a very painful five-year turnaround,’’ said remuneration ­expert Dean Paatsch, a ­director of Ownership Matters.

He applauded the airline for cutting upfront cash bonuses and making executive remuneration as deferred payments.

Qantas chairman Leigh Clifford defended the bonuses, noting shareholders had been rewarded through $1.5bn in buybacks and dividends. This year the airline also paid 25,000 staff cash bonuses of ­between $2500 and $3000 on top of a 5 per cent bonus paid last year to staff.