QANTAS Profit
Is Alan Joyce an android who is only capable of regurgitating the preprogrammed Olivia sanctioned spin? Incapable of answering a question. Then the goons step in.
MARK COLVIN: Qantas boss Alan Joyce has been handed a massive incentive to turn his struggling company's fortunes around.
Shareholders have agreed to pay the chief executive a $2.5 million bonus if he can transform Qantas into one of the world's most valuable airlines.
Business reporter Pat McGrath was at the Qantas annual general meeting.
PAT MCGRATH: Today's annual general meeting was a chance for shareholders the chance to grill the Qantas board and senior management about the company's future direction.
There was no official press conference to give journalists an opportunity to ask Alan Joyce about the decision to pay him a bonus worth $2.5 million.
(Approaches Alan Joyce) Excuse me sir, Pat McGraph from the PM program at the ABC. Just wondering, is the $2.5 million, is it really worth a bonus to essentially be doing your job?
ALAN JOYCE: I'm, I'm absolutely committed to Qantas. I think it's a great airline, a great brand. The company will make, has made a profit in the first quarter of this year, we're on track to meet the target of being profitable in the first half. That's a great turnaround and this business is on track to go back into profitability.
MINDERS: Thank you very much, we'll have to leave it there.
PAT MCGRATH: Earlier in the day, Qantas chairman Leigh Clifford set out the terms of the bonus, which would be paid in the form of Qantas shares.
LEIGH CLIFFORD: These rights will only vest and convert to shares if the three year performance conditions are achieved.
PAT MCGRATH: Alan Joyce gave himself a 5 per cent pay cut this year after announcing a major restructure that will leave at least 5,000 Qantas workers without jobs over three years.
And he didn't receive any bonuses last financial year when the company posted a loss of almost $3 billion.
But he'll be back among the country's best-paid CEOs if the restructure yields results.
LEIGH CLIFFORD: Our total shareholder return needs to outperform 75 per cent of the companies in the ASX 100, as well as 75 per cent of the global airlines comparison group.
PAT MCGRATH: In the end about 98 per cent of shareholders voted in favour of bonus, including almost 250 represented at today's meeting by John Curry from the Australian Shareholders Association.
JOHN CURRY: I think it's fair, the whole concept is aimed at long term incentives, not short term and Qantas certainly are in the market for the long term.
PAT MCGRATH: You talked about the procedure for Alan Joyce's long term incentives. How would you like to see that run? What are the problems or things that could be thrown into the mix there?
JOHN CURRY: The share price today, for the purpose of these long term incentives, is 78 cents. Well now clearly the market is a lot more than that. This is where the hocus pocus bit comes in, black magic. They use determinates of discounted cash flows, possibility of dividends and they come up with a figure. No one really knows what all that means, except the executive finally might get a big parcel of money.
PAT MCGRATH: Alan Joyce says the turnaround has already begun.
Figures released this morning show Qantas passenger volumes were up by almost 3 per cent last month and that's flowing through the revenue.
ALAN JOYCE: Our preliminary figures indicate the group has made an underline profit before tax for the first quarter of the financial year 2015. We're on track to deliver an underline profit for the first half of the financial year.
PAT MCGRATH: And Alan Joyce is a step closer to his bonus tonight after a big rise in Qantas shares after the release of today's passenger figures.
Qantas shares closed almost 3.5 per cent higher on $1.43 cents.
MARK COLVIN: Pat McGrath.
Shareholders have agreed to pay the chief executive a $2.5 million bonus if he can transform Qantas into one of the world's most valuable airlines.
Business reporter Pat McGrath was at the Qantas annual general meeting.
PAT MCGRATH: Today's annual general meeting was a chance for shareholders the chance to grill the Qantas board and senior management about the company's future direction.
There was no official press conference to give journalists an opportunity to ask Alan Joyce about the decision to pay him a bonus worth $2.5 million.
(Approaches Alan Joyce) Excuse me sir, Pat McGraph from the PM program at the ABC. Just wondering, is the $2.5 million, is it really worth a bonus to essentially be doing your job?
ALAN JOYCE: I'm, I'm absolutely committed to Qantas. I think it's a great airline, a great brand. The company will make, has made a profit in the first quarter of this year, we're on track to meet the target of being profitable in the first half. That's a great turnaround and this business is on track to go back into profitability.
MINDERS: Thank you very much, we'll have to leave it there.
PAT MCGRATH: Earlier in the day, Qantas chairman Leigh Clifford set out the terms of the bonus, which would be paid in the form of Qantas shares.
LEIGH CLIFFORD: These rights will only vest and convert to shares if the three year performance conditions are achieved.
PAT MCGRATH: Alan Joyce gave himself a 5 per cent pay cut this year after announcing a major restructure that will leave at least 5,000 Qantas workers without jobs over three years.
And he didn't receive any bonuses last financial year when the company posted a loss of almost $3 billion.
But he'll be back among the country's best-paid CEOs if the restructure yields results.
LEIGH CLIFFORD: Our total shareholder return needs to outperform 75 per cent of the companies in the ASX 100, as well as 75 per cent of the global airlines comparison group.
PAT MCGRATH: In the end about 98 per cent of shareholders voted in favour of bonus, including almost 250 represented at today's meeting by John Curry from the Australian Shareholders Association.
JOHN CURRY: I think it's fair, the whole concept is aimed at long term incentives, not short term and Qantas certainly are in the market for the long term.
PAT MCGRATH: You talked about the procedure for Alan Joyce's long term incentives. How would you like to see that run? What are the problems or things that could be thrown into the mix there?
JOHN CURRY: The share price today, for the purpose of these long term incentives, is 78 cents. Well now clearly the market is a lot more than that. This is where the hocus pocus bit comes in, black magic. They use determinates of discounted cash flows, possibility of dividends and they come up with a figure. No one really knows what all that means, except the executive finally might get a big parcel of money.
PAT MCGRATH: Alan Joyce says the turnaround has already begun.
Figures released this morning show Qantas passenger volumes were up by almost 3 per cent last month and that's flowing through the revenue.
ALAN JOYCE: Our preliminary figures indicate the group has made an underline profit before tax for the first quarter of the financial year 2015. We're on track to deliver an underline profit for the first half of the financial year.
PAT MCGRATH: And Alan Joyce is a step closer to his bonus tonight after a big rise in Qantas shares after the release of today's passenger figures.
Qantas shares closed almost 3.5 per cent higher on $1.43 cents.
MARK COLVIN: Pat McGrath.
Last edited by spelling_nazi; 25th Oct 2014 at 08:18.
Spelling Nazi...you can get the landing bonus only if you stall it at cruise altitude first, give the rudders a red-hot go on the way down, then recover in ground effect. That's what Alan would do. 
Spelling Nazi...you can get the landing bonus only if you stall it at cruise altitude first, give the rudders a red-hot go on the way down, then recover in ground
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Anyone that can announce a loss in the billions, lay off 5000 staff then accept a $2.5 million bonus in the same 12 month period should be jailed !
Sorry, but I am very angry.
Sorry, but I am very angry.
All smoke and mirrors.
Joyce did not say they would make a profit.
He said they were on track to achieve an underlying profit, whatever that means (there is no such thing in accounting, and who knows what "on track" means). They will define "underlying" to suit their own ends by excluding all sorts of expenses.
If they want to make such statements, they should be prepared to back them up with numbers - they would have had the September quarter numbers, if they were so good, they should have announced them.
Even worse, the financial press accepted their word without question. Hopeless the lot of them.
ASIC should take a close look at Qantas and their disclosure practices. A cynical and not very sophisticated attempt to boost the share price.
Joyce did not say they would make a profit.
He said they were on track to achieve an underlying profit, whatever that means (there is no such thing in accounting, and who knows what "on track" means). They will define "underlying" to suit their own ends by excluding all sorts of expenses.
If they want to make such statements, they should be prepared to back them up with numbers - they would have had the September quarter numbers, if they were so good, they should have announced them.
Even worse, the financial press accepted their word without question. Hopeless the lot of them.
ASIC should take a close look at Qantas and their disclosure practices. A cynical and not very sophisticated attempt to boost the share price.
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ASIC, are you reading this?
ASIC should take a close look at Qantas and their disclosure practices.
The response to the Commonwealth financial planning scandal shows banks really are above the law
Yep, ASIC's a#$e is for hire.
