Reward for Joyce for beating target
The release of the pay card 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 pretax 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 received $1.36 million - which included a termination payment of $649,000 - compared with $962,000 a year earlier. Mr Buchanan left 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". Mr Clifford 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 performance of its under-performing 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…
According to Qantas' annual report, Alan Joyce's take-home pay for the year to June rose by just over $1 million to $3.33 million, up from $2.28 million in 2011–12.
Qantas' statutory figure was $5.1 million because accounting rules include the value of share-based payments and long-term incentives. The company said that $1.8 million of that related to long-term incentives that were accounted for even though the shares were not awarded this year, so Joyce's actual take-home was lower at $3.33 million.
The package included $2.1 million in base pay, a cash short-term bonus of $775,000, and $388,000 in deferred shares, contributing to his $3.33 million actual take-home pay for the year to June.
Qantas says short-term bonuses are measured against factors such as underlying pre-tax profit, operational safety, flights arriving on time, and the expansion of Jetstar in Asia. The company does not disclose the specific earnings target.
No. The report states that Mr Joyce did not receive any long-term bonuses this year.
Chief Financial Officer Gareth Evans' take-home pay rose to $1.43 million from $1.24 million. Jetstar's former CEO Bruce Buchanan received $1.36 million, which included a $649,000 termination payment, compared with $962,000 a year earlier.
Chairman Leigh Clifford said executive pay reflected that Qantas exceeded strategic targets but fell short of some financial targets in a challenging global market. He also said senior executives and middle managers would not receive a base pay increase next year because of the difficult operating environment.
The annual report notes Qantas launched an alliance with Emirates this year to help improve its under-performing international operations. Executives' pay reports — released by about half of Australia's major listed companies ahead of shareholder meetings — give shareholders information on how management is being rewarded while the airline pursues strategic changes like the Emirates alliance.
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