Reward for Joyce for beating target
The take-home pay for Qantas chief executive Alan Joyce has risen by just over $1 million to $3.33 million this year, the airline's annual report shows.
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.