Qantas boss lands an extra $1m
The release of the pay cards for its senior executives comes just a week after Qantas lifted its bottom line back into the black, posting a modest $6 million full-year net profit, a year after recording its first loss since it was privatised.
The annual report reveals Mr Joyce's statutory pay totalled $5.1 million, down from $5.6 million in 2011-12. But Qantas emphasised Mr Joyce's actual pay amounted to $3.33 million for the year to June, up from $2.28 million in 2011-12. His latest package included $2.1 million in base pay, a cash bonus of $775,000 and a further $388,000 in deferred shares.
Last year, he turned down a short-term bonus of $792,000.
The short-term bonus is measured against a range of factors, including underlying pre-tax profit, operational safety, flights arriving on time and the expansion of Jetstar in Asia. Qantas does not disclose the earnings target.
Qantas said Mr Joyce's actual pay differed from the statutory figure of $5.1 million due to the accounting treatment of share-based payments. That is because the latter included an accounting value of $1.8 million for long-term incentives, even though the shares were not awarded this year.
The take-home pay of Qantas chief financial officer Gareth Evans was $1.43 million this year, up from $1.24 million.
Jetstar's former chief executive Bruce Buchanan also received $1.36 million - which included a termination payment of $649,000 - compared with $962,000 a year earlier. Mr Buchanan left the airline last year.
Qantas chairman Leigh Clifford said the pay for executives reflected that the airline exceeded its targets on strategy but was "tempered by the fact we were below our financial targets in a challenging global market".
He said senior executives, including Mr Joyce and middle managers, would not receive an increase in their base pay next year "in light of the challenging operating environment".
The pay for Qantas' senior executives has been a controversial topic over the years. In 2011, it was at the forefront of several unions' campaigns against job losses and other restructuring, which culminated in management's decision to ground the airline in order to break the deadlock.
Mr Joyce did not receive any long-term bonuses this year.
It came in a year in which Qantas launched its alliance with Emirates as part of an attempt to turn around the under-performance of its international operations.
About half of Australia's major listed companies have released their executive pay reports ahead of shareholder meetings over the next two months.
Frequently Asked Questions about this Article…
Alan Joyce’s take-home pay for the year to June was reported as $3.33 million, up from $2.28 million the previous year. The airline’s annual report also showed a higher statutory figure of $5.1 million, which reflected accounting treatments rather than cash actually received.
The statutory pay total ($5.1 million) includes accounting values for share-based and long-term incentive arrangements — in this case an accounting value of about $1.8 million — even though those shares weren’t awarded this year. Qantas says the easier-to-understand take-home figure ($3.33 million) better reflects what Joyce actually received.
Qantas reported Joyce’s package included $2.1 million in base pay, a cash short-term bonus of $775,000 and $388,000 in deferred shares. The company also noted he did not receive any long-term bonuses this year.
Qantas says short-term bonuses are measured against a range of factors, including underlying pre-tax profit, operational safety, on-time arrivals and the expansion of Jetstar in Asia. The airline does not disclose the specific earnings target tied to those bonuses.
Yes. Qantas’ chief financial officer Gareth Evans received $1.43 million this year, up from $1.24 million. Former Jetstar chief Bruce Buchanan received $1.36 million, which included a $649,000 termination payment.
No. Qantas chairman Leigh Clifford said senior executives, including Alan Joyce and middle managers, will not receive an increase in base pay next year because of the challenging operating environment.
Qantas released the executive pay details in its annual report shortly after the airline reported returning to a modest full-year net profit of $6 million. The pay cards were published as part of the normal annual reporting process ahead of shareholder meetings.
Yes. The article notes Qantas executive pay has been controversial in past years and was central to union campaigns in 2011 related to job losses and restructuring. Executive pay remains a topic investors and shareholders watch closely during annual reporting and meetings.
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