Shareholders still eye scalp of Qantas chair Richard Goyder

The release of the Qantas annual report has failed to relieve pressure on chair Richard Goyder, with a potential $10m in bonuses for ex-CEO Alan Joyce still up in the air.

The release of the Qantas annual report has failed to relieve pressure on embattled chair Richard Goyder with a potential $10m in bonuses for former CEO Alan Joyce still up in the air.

Mr Joyce’s final pay outcome of $21.4m was subject to “clawback provisions, should the board determine that to be necessary”, Mr Goyder said in the report.

Qantas investor Steve Johnson, of Forager Funds, said the decision to keep a potential $10m of bonuses up in the air would be ­unlikely to relieve much pressure on the airline and its chair.

“It feels to me like the pressure valve is still on high despite the CEO leaving,” he said. “And I’m sure they’re thinking about the chairman role.

“It feels like they’re trying to make the right noises and maybe bury it in 12 months’ time.”

Asked if a change of chair would ease tensions at the embattled airline, Mr Johnson said it was unlikely to lead to any major strategy change.

“I don’t think it’s going to make a huge amount of difference,” he said. “It’s probably time and it’s not the end of the world if he moves on. But I think in general whoever is in that chair seat is likely to make similar operational decisions about the way the business should be run.”

Qantas chief executive Vanessa Hudson. Picture: NCA NewsWire / Christian Gilles

It comes as the Federal Court has ordered Qantas CEO Vanessa Hudson to attend mediation with the Transport Workers Union to decide compensation for 1700 people whose jobs were ­illegally outsourced by the airline during the Covid pandemic.

The long-running battle returned to the Federal Court on Wednesday after Qantas exhausted all avenues for appeal when the High Court upheld previous rulings in favour of the TWU.

Barrister for the TWU, Mark Gibian, pushed for the compensation matter to be decided in an open court rather than mediation to ensure transparency for the workers involved.

But Federal Court justice ­Michael Lee said that would be a more costly path for the parties, and would place a drain on the resources of the court.

He ordered the mediation to begin on Monday with a view to finalising the matter by the next case management hearing on ­October 27, 2023.

Australian Shareholders Association chief executive Rachel Waterhouse, who has called for Mr Goyder to be replaced as chair, said it was good, however, to see an increased focus on the ­customer in the airline’s short-term incentive plan for executives.

“They should have had all of that risk reporting flowing through to the board … and maybe they did, but we just don’t know,” she said.

“Also, reputation is coming through there as important in the short-term incentive plan, and that’s what Qantas really needs to do is restore trust in the brand, and that’s the job of the new CEO to do that.

“But that really needs to be a cultural change that happens, not just something in the annual report.’’

Former Qantas CEO Alan Joyce. Picture: NCA Newswire / Gaye Gerard

Ms Waterhouse, who foreshadowed the need for clawback provisions in the remuneration report in an opinion piece published a week ago, said it was good to see them there but the outcome of their inclusion was obviously conditional on key issues such as the ACCC court action and what compensation might flow from the recent high court decision that Qantas illegally outsourced 1700 ground handler jobs.

“At a high level, it’s good to see some thinking around clawbacks,’’ Ms Waterhouse said.

She said the ASA was of the opinion Mr Goyder should be replaced as chair, however there was ambiguity around what succession planning might be in place.

The Flight Attendants Association of Australia also welcomed the 20 per cent cut to “excessive” short-term bonuses and urged the board to also review Mr Joyce’s travel entitlements.

Under his original contract, Mr Joyce is entitled to two free international flights and 12 domestic flights a year for the rest of his life.

FAAA federal secretary Teri O’Toole said that was not appropriate for “the architect of the largest illegal sacking of workers in Australian history”.

“He has damaged the Qantas brand and should not benefit from these illegal decisions,” said Ms O’Toole.

Greens Transport, Infrastructure and Sustainable Cities spokesperson Elizabeth Watson-Brown said the Qantas board should rule out handing Alan Joyce the extra $14.4m in bonuses.

“Alan Joyce should pay back his extremely generous pay cheque given Qantas nosedived under his watch,” Ms Watson-Brown said.

She said it was disgraceful that he was paid an exorbitant salary 300 times what cabin crew and ground staff typically earn.

Originally published as Shareholders still eye scalp of Qantas chair Richard Goyder