Qantas has disclosed that former CEO Alan Joyce will receive an additional A$3.4 million for his final two months in the role, as part of the airline’s 2024 annual report.
The payment serves to offset part of the A$9 million in bonuses that Joyce lost due to controversies during his tenure, including the illegal dismissal of 1,700 workers during the pandemic and the Australian Competition and Consumer Commission’s (ACCC) lawsuit over cancelled flights.
Joyce resigned in early September 2023, stepping down two months earlier than planned to facilitate the airline’s leadership transition.
More for Joyce, less for Hudson
Qantas has not ruled out further payouts to Joyce, with the potential for him to receive an additional A$2.4 million in deferred bonuses by 2026, depending on the airline’s share price and performance goals.
This would be on top of the A$14.9 million he earned in the 2022-23 financial year, his final full year as CEO.
Meanwhile, current CEO Vanessa Hudson took a pay cut of A$1.5 million for the 2023-24 period, following a decision by the Qantas board to reduce executive bonuses by 30% amid mounting scandals.
Hudson earned A$4.4 million during the financial year, down from the A$6 million she received the previous year.
Fall in profits
Qantas reported a 28% fall in post-tax profit to A$1.25 billion for the 2023-24 financial year, driven by moderating fares, increased customer spending and reduced freight revenue.
Hudson stressed the airline’s commitment to “restoring trust and pride” following a turbulent period.
Qantas has also reached an agreement with the Flight Attendants’ Association of Australia to provide better pay and job security for its workforce.
The airline expects these changes to cost A$60 million in the 2025 financial year.