FORMER Qantas boss Alan Joyce will have his packet packet reduced by over $9 million as a penalty for mistakes under his leadership, which led to significant reputational damage for the carrier.
The decision made by the current board follows a recent settlement with the ACCC, which saw Qantas concede it misled passengers about the sale of tickets on flights it had already decided to axe.
The carrier was also found to have illegally outsourced ground handlers in 2020 while Joyce was at helm, putting it in breach of the Fair Work Act.
“The events that damaged Qantas and its reputation and caused considerable harm to relationships with customers, employees, and other stakeholders, were due to a number of factors,” Qantas said in making its decision.
Although there were no findings of “deliberate wrongdoing”, the review concluded that mistakes were made by the then leadership relating to major customer service issues and brand damage.
Joyce’s massive pay cut will see him lose $8.36 million worth of shares, which were held on his behalf as part of the 2021-2023 Long Term Incentive Plan, as well as a 33% reduction in Joyce’s short-term incentive for FY23, valued at around $900,000.
Qantas has also withheld the balance of FY23 short-term incentive for other executives after the ACCC High Court case and legislation breaches.
Incoming chairman, John Mullen, said the carrier would now try to learn from the mistakes made following COVID.
