Sydney, 8 August 2024 (TDI): After a string of controversies and expensive legal proceedings, Australian airline Qantas will reduce the exit payout of its former CEO.
As informed to investors by the corporation, Alan Joyce’s multi-million dollar compensation will be reduced by about 40%.
Furthermore, Qantas plans to reduce by more than a third, the short-term incentives given to senior executives, both current and past.
Meanwhile, Qantas disclosed the outcomes of an assessment conducted on the management of the company under Mr. Joyce’s tenure.
There were multiple reasons for the incidents that hurt Qantas and its brand, as well as the company’s relationships with stakeholders, workers, and consumers.
The inquiry concluded that errors were committed by the board and management, even though there was no evidence of willful misconduct.
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After departing the company last year, Mr. Joyce was supposed to get A$21.4 million ($14 million; £11 million), but the compensation will now be reduced by A$9.26 million.
His 15 years as CEO saw the company through the Covid epidemic, record fuel prices, and the global financial crisis of 2008.
However, the public’s dissatisfaction with Qantas was intensifying by the time he resigned in 2023 due to the airline’s treatment of employees, high tickets, and frequent delays and cancellations.
After Mr. Joyce stepped down last September, Vanessa Hudson became the airline’s first female leader.
Two months ahead of timeline, he left the company two months before he was supposed to in November.
Speaking at the time, Mr. Joyce claimed that considering “events of the past” showed that this was “the best thing” he could accomplish.
Despite a number of controversies, the airline has achieved record earnings, which has incensed the public.
Regarding the firing of employees during the pandemic, Qantas lost a High Court challenge last year.
A$120 million was also agreed to be paid in May to resolve a case regarding the sale of thousands of tickets for previously canceled flights.
