Former, current senior executives to also see 33% cut to short-term bonuses
Former Qantas CEO Alan Joyce will see his multi-million-dollar payout reduced by $9.26 million for his role in the airline's "significant reputational and customer service issues."
The Qantas Board announced on Thursday that it is forfeiting 100% of the shares held on Joyce's behalf in relation to the 2021-2023 Long Term Incentive Plan (LTIP), which is valued at $8.6 million.
They are also reducing his short-term incentive bonus by 33%, or $900,000.
According to reports, the cuts will leave Joyce with $14.3-million payout after his tenure from Qantas.
The Qantas Board said it considered the individual and collective accountability of members of the Group Management Committee in reaching the decision.
"Mr. Joyce was the Chief Executive Officer of the Qantas Group. In this role he had overall accountability and responsibility for the outcomes of the business, and this is reflected in the forfeiting of his 2021-2023 LTIP shares that vested in August 2023," the board said in its announcement.
Joyce left Qantas in September 2023 after a 15-year tenure at the airline.
This followed numerous controversies that hit the airlines under Joyce, which includes a court loss over the illegal sacking of ground staff in 2020 and a recent settlement with the Australian Competition and Consumer Commission over flight cancellations.
"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," the board said.
"While there were no findings of deliberate wrongdoing, the review found that mistakes were made by the Board and management which contributed to the Group's significant reputational and customer service issues."
Aside from Joyce, current and former senior executives affected will also see a 33% cut to their short-term incentives.
"The Board has also taken into account their performance in bringing Qantas through the pandemic and the challenges of standing up the airline through that period. The combination of these factors is reflected in the reduction in the short-term incentives," it said.
