Dixon's parting Obscenity/Where QF's money goes merged
Steve Creedy | September 21, 2009
Article from: The Australian
FORMER Qantas chief executive Geoff Dixon is set to anger unions one last time after the airline's annual report revealed today he received almost $11 million in cash and other benefits last financial year, despite serving in the top job for just five months before stepping down.
Golden handshake: Former Qantas CEO Geoff Dixon got nearly $11 million in cash and benefits for his final year. Picture: Bloomberg
Mr Dixon’s cash and non-cash benefits fell from $5.54 million to $2.06m, but his package was boosted by $3.17m in share-based payments, a $3m superannuation deal, $1.72 million in annual leave payments and a $657,500 termination payment.
Mr Dixon ended his eight-year tenure as Qantas chief executive on November 28 last year, and served as a consultant to the company for a further four months.
His final remuneration package was the highest of any of the departing executives, with former Qantas group executive John Borghetti coming in next at $4.93m, followed by ex-financial chief financial officer Peter Greg, at $4.88m.
New chief executive Alan Joyce received $3.66m, down from just over $5m last year, with other newly appointed senior executives receiving from $150,040 to $1.18m, reflecting the varying times they have been in the job.
The payouts to departing executives are unlikely to impress Qantas staff facing another $1.5 billion in cost-cutting over three years, following last year’s 88 per cent fall in full-year net profit.
In his report, chairman Leigh Clifford warned that the global economic outlook remained uncertain and the airline had yet to see substantial improvements in underlying business conditions.
"Many factors are in play that could affect the timing of the recovery,” he said.
“Uncertainty is also being created through significant capacity increases, domestically and internationally, by Qantas Group competitors, some of whom enjoy very favourable taxation and other arrangements.”
Still, Mr Clifford said the company was well positioned to both withstand the economic downturn and seize on opportunities during the recovery.
Mr Joyce said that management was focused on creating a lean and responsive organisation.
“We have stripped back management layers to speed up decision-making and to give our frontline people more power,” he said.
“We are working internally, and with suppliers, to lower our cost to serve, and to streamline business processes.”
Mr Joyce said Qantas had worked hard to restore its reputation after damaging industrial action and two major inflight incidents last year.
He said the airline had brought its on-time performance back to industry-leading standards and achieved significantly improved customer satisfaction ratings.