Qantas Breaches Salary Cap
AXP reports that Qantas is under investigation by the Shareholders Regulatory Society for breach of the executive salary cap. Under the approved code of conduct no senior executive can be paid more than five times the salary of the lowest paid employee.
It appears the SRS has sent in the auditors to check out commonly quoted insiders comments that Qantas has been breaching the salary cap for years. Other airlines, who have been abiding by the required code of decency, have been disadvantaged in competitition with the red rat. Early reports indicate that there have been more than one set of books. Some books indicated salary; other set of books show performance bonuses even if there was no performance that year; and a third set detailed above salary payments including costs for cars, entertainment (ooh la lah!), and any other bill that a senior executive should have been paying. Apparently it has been going on for some time.
One insider told us it is very common for the folding to exchange hands in airline sick bags. This is because they are in ready supply, paid for by the company, and most people see them as part and parcel of just what is around when Qantas senior executives are in the room.
Personally, I don't believe a word of it but some tell me that the facts are the facts. A announcement is expected shortly from the SRS.