Qantas Group has revealed in its annual report for fiscal year 2023 that it has reduced short term incentive payments for its senior executives by 20% in light of the ruling that the airline contravened the Fair Work Act 2009 when it outsourcing ground handing operations https://www.aviationnews-online.com/airline/qantas-appeal-rejected-by-high-court-over-outsourcing/ as well as the action by the ACCC over alleged misleading sales. https://www.aviationnews-online.com/regulatory/accc-attacks-qantas-for-alleged-misleading-sales-2/
Qantas said in a statement: “The Board has applied its discretion to reduce short term incentives for senior executives for FY23 by 20 per cent in recognition of the customer and brand impact of cumulative events. While the ACCC’s recent allegations are untested, the Board understands shareholder and community concerns about them coinciding with significant executive pay outcomes. As part of good governance, after applying the 20 per cent reduction the Board will withhold the balance of the FY23 short term incentive for senior executives while this matter progresses.”
Qantas has also withheld certain payments to outgoing CEO Alan Joyce. The airline confirmed in a statement that it had withheld remuneration for FY23, in addition to $2.2 million in short term bonuses, while a further $8.3 million of a total adjusted $21.4 million is subject to clawback “should the Board determine that necessary”. When combined with additional long-term incentives already granted, a total of $14.4 million is subject to malus and clawback if considered necessary, says the airline.
“We’re determined to bring Qantas back to its position as one of the most trusted brands,” said Qantas. “That can only happen by consistently delivering to the standards people rightly expect, and the Board is working closely with Vanessa [Hudson] and her new management team to ensure that happens.”