Summary Qantas former CEO Alan Joyce taking the fall for governance and executive remuneration issues in 2022/23. Board reduces Joyce's earnings by AU$9.26m (about $6m) and senior executives' bonuses by 33%.
While the report finds no deliberate wrongdoing, blame mostly falls on Joyce amidst Qantas' $100m fine and customer service woes. Today marks an ignominious day in the history of one of the world's oldest airlines, Australia's flag carrier, Qantas. Today, Qantas released two documents relating to the airline's performance in 2022/23, one of which scrutinized the board's decision-making and governance and another regarding executive remuneration.
Gone but not forgotten While today's announcements from Qantas are from separate reviews, they are inextricably linked. The Qantas Governance Review Report was commissioned in October 2023 and was primarily facilitated by an external business adviser appointed by the board. The remuneration review was the work of the board, which in September last year announced issues with bonuses and incentives awarded in FY23.
The Australian media has jumped all over these announcements with the sole purpose of attacking former CEO Alan Joyce and the long-term incentive and bonus payments he was awarded. The board has not missed the chance either, by deciding that Joyce's FY23 remuneration would be reduced by AU$9.26 million ($6m), forfeiting Long Term Incentive Plan (LTIP) shares valued at AU$8.
36 million ($5.4m) and reducing his FY23 short-te.