Qantas cuts executive pay, but Joyce still earns millions

Hudson, who earned around $6 million in the 2023 financial year, was not paid a retention bonus this year, which resulted in her pay being cut to $4.4 million.

Joyce last month had his final pay cut by more than $9 million, losing all of his shares from the airline’s Long-Term Incentive Plan (LTIP) – valued at $8.36 million – as well as 33 per cent of his short-term incentives from FY22–23, or $900,000.

Despite this, however, he remained eligible for around $3.1 million in long-term bonuses, as well as almost $400,000 in his salary for his final two months; additionally, he holds around $2.4 million in Qantas shares. He is reportedly still eligible for long-term bonuses until 2026.

The executive remuneration changes, which include more weight on customer outcomes when determining executive bonuses, and “brand reputation” being now factored in to long-term incentives, follow an acrimonious AGM in November last year, where shareholders revolted by an overwhelming 83 per cent against the airline’s executive pay plan.

“The board has listened to feedback on the pay structure for our executives and have made a series of changes which we are confident will encourage better outcomes for our stakeholders,” outgoing Qantas chair Richard Goyder said.

“Vanessa and her new leadership team continue to make good progress balancing the needs of customers, employees and shareholders. I wish incoming chair John Mullen and all Qantas Group employees all the best in the years to come.

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“With a passionate and dedicated workforce and a pipeline of investment that will ultimately change the way Australians connect with each other and the world, the future for Qantas is incredibly bright.”

Qantas suffered a massive hit to its reputation in 2023 over a string of bad press, including the Australian Competition and Consumer Commission’s “ghost flights” lawsuit – which was settled earlier this year – and the High Court’s ruling over the illegal outsourcing of ground workers during the pandemic.

In a statement to the ASX last month, Qantas’ board said that while there was no deliberate wrongdoing found, “mistakes were made by the board and management which contributed to the group’s significant reputational and customer service issues”.

“The board has also determined that the short-term incentives for affected current and former senior executives will also be reduced by 33 per cent. Inclusive of Mr Joyce’s reduction, the overall reduction in the FY23 short term incentives is approximately $4.1 million,” the statement read.