The Qantas Board of Directors has made the decision to reduce the compensation package of former CEO Alan Joyce for the year 2023.
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| FILE PHOTO: Alan Joyce, Chief Executive Officer of Qantas, speaks with members of the media at an event celebrating Qantas' 100th birthday at Sydney Airport in Sydney, Australia, November 16, 2020. REUTERS/Loren Elliott/File Photo © Thomson Reuters |
Qantas Airways of Australia announced on Thursday that it will reduce the fiscal 2023 compensation of former CEO Alan Joyce through adjustments to his long- and short-term incentives, as the airline seeks to regain investor confidence and rehabilitate its image.
Joyce, who stepped down in September 2023, received A$21.4
million in the 2023 financial year, as reported in the company’s annual report.
His remuneration will be decreased by A$9.26 million
(approximately $6.03 million). Additionally, the airline indicated that it will
cut short-term incentives for both current and former senior executives by 33%.
The company acknowledged that various factors contributed to
the events that harmed Qantas's reputation and strained relationships with
customers, employees, and other stakeholders.
Although the board did not identify any intentional
misconduct, a governance review revealed that the board had made
"mistakes" leading to significant reputational and customer service
challenges.
Qantas has faced numerous legal and regulatory challenges,
prompting increasing demands from dissatisfied investors for management
restructuring.
In May, the airline agreed to a settlement of A$120 million
to resolve a lawsuit from regulators concerning the sale of tickets for flights
that had already been canceled, as part of efforts to address a reputational
crisis affecting the airline.