Qantas boss wins 71 per cent, $2m pay hike
QANTAS chief Alan Joyce has been rewarded with a $5 million salary package for his work this year in restructuring the airline, despite giving 1000 workers their marching orders.
The massive 71 per cent increase comes on the back of the $552 million profit announced by Qantas and the airline's strategy to set up an Asian offshoot to help stem losses from its international business.
The rise earned the immediate wrath of Qantas unions, which have been fighting the airline over wages and condition claims for months.
Mr Joyce's package rose from $2.94 million in 2010 to $5 million this financial year.
It also comes as Qantas shares have dived in value this year and the airline's international division lose more than $200 million.
Mr Joyce was among the top echelon of Qantas executives whose total salary packages rose from $8.9 million in 2010 to a total of $14.436m in 2011.
But the airline pointed out that Mr Joyce's final salary package included share-based bonuses - that hinge on meeting performance targets - that he may never receive.
A Qantas spokesman said the $5 million pay packet was listed in the annual report to meet accounting requirements.
He said Mr Joyce's actual pay had decreased in the past financial year, and was actually closer to $3 million.
"Mr Joyce did not have a 71 per cent increase in his pay, it was actually almost a 10 per cent decrease compared to the previous year," the spokesman said.
Qantas executives have not been awarded a cash bonus for the past two years and Mr Joyce's pay in his last year as CEO of Jetstar in 2007-08 was higher than his pay as Qantas CEO in 2010-11, the spokesman said.
Jetstar chief Bruce Buchanan also saw his salary rise from $1.26 to $1.4 million this year, before share payments are acounted for which took the figure back to $905,000.
Pilots union president Captain Barry Jackson slammed Mr Joyce's rise as "abhorrent".
He said it was "a bad look'' when about 200 pilots faced either losing their jobs through redundancy or re-deployment to Jetstar on a lower wage.
"Pilots dedicate a good part of their lives to getting up to the required standard for Qantas and that costs them a lot,'' Captain Jackson said.
"To see Mr Joyce take this kind of money when jobs are being lost is abhorrent and I think Australians will feel that.''
A spokesman for the Australian Licensed Aircraft Engineers Association, also in dispute with Qantas over wages and job security, said the executive risse would only harden the attitude of members.
"It really sends a message about commitment to those workers who really love the company and the Qantas brand,'' he said.
"It is a slap in the face.''
Comments on this story
mum from Doncasrter East of doncaster east Posted at 5:43 PM September 07, 2011
The more people he sack, the more money he will get. Can someone please try to help me to understand who authorised this kind of system. It's the same for the Bank. The more staff that area manager get rid of, the more chances that he/she get a promotion. It's so UNFAIR and we are SICK of this.
Comment 1 of 28
Jarrod Kent of Cranbourne Posted at 5:47 PM September 07, 2011
id love to ask him how he sleeps at night
Comment 2 of 28
Tony Posted at 5:53 PM September 07, 2011
Axe staff, then Qantas senior management get a obscene payrise. What a disgrace.
Comment 3 of 28
Don Mann Posted at 5:55 PM September 07, 2011
You have got to be kidding! This is corporate greed at its worst!
Comment 4 of 28
Andrew of Melb Posted at 6:03 PM September 07, 2011
Well well well... fat cats at it again. Happy to cut employees off while racking in the cash. Crying poor under a sky raining $100 bills. We need a Law to stop these fat cats from making these huge profits while staff get the axe. Watch the companies ask the government to tear up workers rights to decent pay.
Comment 5 of 28
Toby of Ivanhoe Posted at 6:04 PM September 07, 2011
Simple, if you don't agree with his exorbitant salary then protest by ringing the airline and telling them that you will never fly Qantas again unless he drops his income to something reasonable (under $500K). If enough people stop flying Qantas then it could really have an impact and could make them think twice next time they are considering stealing from the shareholders.
Comment 6 of 28
Fred Posted at 6:08 PM September 07, 2011
OBSCENE !! he gets an INCREASE of $2 million while some of his employees are struggling on a TOTAL income of $40,000 and others lose their job altogether. How any man can live with his conscience in such a position is beyond me. The rich get richer and the poor get relatively poorer. There is no word for this but obscene!
Comment 7 of 28
Emu in the Desert of Dubai Posted at 6:10 PM September 07, 2011
If I was a QANTAS shareholder and Mr Joyce had doubled net profit I would have no issue at all in approving a 71% increase in his salary package. At the end of the day, Mr Joyce is answerable to the QANTAS board who are in turn, answerable to the QANTAS shareholders who are the owners of the company. On the issue of job losses, it is never, ever a desirable outcome, I have been retrenched so I know, but clearly QANTAS is an inefficient business and that is unsustainable. The fact is in 2011, the second largest cost of business for an airline after fuel, is staff and as most airlines have done all they can re fuel savings, head count is the next on the list. The unions may not like it but they have to be pragmatic, if the loss of 1000 jobs saves the business, that’s a good net result.
Comment 8 of 28
Grumpy of Burwood Posted at 6:13 PM September 07, 2011
Ahhh Capitalism 101. Sack the workers, maximise profits though the rules are you can never satisfy investors expectations and give the CEO a $2 million pay rise. See how easy it is. and the rich keep getting richer, and stuff the rest of us
Comment 9 of 28
Mike Young Posted at 6:28 PM September 07, 2011
I actually agree with the union on this one. This wage increase is abhorrent. Let's hope if Joyce gets the flick at sometime in the future he doesn't go out with a golden handshake like most CEOs who get the flick do. A lot of managers, board members and CEOs should go to the coalface of their businesses and talk with the people who actually work hard to bring the profits the companies desire. They may hear a lot of things they don't like but in the long run the companies will be the better for it.
Comment 10 of 28
Sylvia of Chirnside Park Posted at 6:31 PM September 07, 2011
It must be nice to say you dont have a job and then still be able to live it up. Pity the workers you sacked. Maybe you should give some of your salary to them. They need it more then you.
Comment 11 of 28
jimbo of Melbourne Posted at 6:49 PM September 07, 2011
And you wonder why the average worker has no respect for upper management. GREED.
Comment 12 of 28
Nicole – Small Business Owner of Melbourne Posted at 6:51 PM September 07, 2011
Isn't sacking 1000 workers part of the deal? He was remunerated to restructure the company. It takes courage and determination to change a company. Getting rid of dead wood is one of the hardest parts, and he should be rewarded for that.
Comment 13 of 28
Time to go on strike. of Melbourne Posted at 6:56 PM September 07, 2011
"abhorrent" that about sums it up.
Comment 14 of 28
Karma Factor Posted at 7:47 PM September 07, 2011
Don't worry, there is always the Karma factor.
Comment 15 of 28
Mark of Sydney Posted at 7:47 PM September 07, 2011
And the MEDIA have the gall to say today that our economy has defeated the recession and it grew by so and so percent and that things are great, REALLY ?? Is this some sort of brainwashing program, everything is extra expensive, fuel is now 1.50, I cant afford a house anywhere near where i work, my wages dont go up. THe RICH are keeping the working people poor and programing us to work into our 70's bcause whe r trapped into 40 year mortages, work, pay taxes, dont b rich, make the rich richer , shut up, stay working, then die. Marvelous life
Comment 16 of 28
Mick of GC Posted at 7:48 PM September 07, 2011
So what, Eddie gets 5 mill a year for doing nothing at least this guy works
Comment 17 of 28
Mary of Bayswater Posted at 7:50 PM September 07, 2011
would not use Qantas if you gave me a free ticket.
Comment 18 of 28
Sharrie of Melbourne Posted at 8:01 PM September 07, 2011
You are an absolute and total disgrace Alan Joyce. Hang your head in shame at your callous greed. It is no wonder workers, including our skilled pilots and maintenance staff have to be made redundant - to fund your bulging personal bank account. GREED GREED GREED. A shameful excuse for a human being.
Comment 19 of 28
Jack of Northcote Posted at 8:02 PM September 07, 2011
If corporations cant be trusted to reign in excess expenditure on management salaries, then Governments should introduce a tax that is at the rate of 90c in the dollar above $500K/year and 95c in the dollar above $1m/year
Comment 20 of 28
P.McCann of sydney Posted at 8:04 PM September 07, 2011
It is disgusting that our once proud airline is now very second rate in all ways, EXCEPTING for the salary paid to CEO JOYCE! Perhaps management should take a hike and the company should spend more on the aircraft so that people might feel safe again! Is this a "privatisation" destruction of a service we once respected? Will you now employ cheap foreign pilots as well, when you get rid of our good pilots?
Comment 21 of 28
Tom Ross of Melbourne Posted at 8:04 PM September 07, 2011
This man physically sickens me. No wonder he couldn't release his pay details during their end of year announcement - how bad would it look if he in one breath announced he was killing off 1000 Australian jobs, and in the next said he earnt a lazy 5 mill. The man is an absolute waste of space, and by all reports, a terrible communicator. Great choice on CEO Qantas!
Comment 22 of 28
John of Toorak Posted at 8:06 PM September 07, 2011
I also am in favour of increasing the top marginal rate to 90% above a certain level. $500K/year seems about right.
Comment 23 of 28
Jim Roberts of Battling away while crooks like joyce play. Posted at 8:08 PM September 07, 2011
So, the guy who was CEO of an Irish airline that he sent bankrupt, went on to be a senior manager at Ansett and bailed from them 2 months before they were bankrupted, then went to Scab, I mean Jetstar and drove down pilot and workers morale, pushed for offshoring, gets made CEO of Qantas, attempts to break it up and offshore it, kill its International operations, sack 1000 workers (with a rumored 2000 more to go by July next year), AND gets rewarded with a $5 MILLION DOLLAR PAYCHECK!?
Comment 24 of 28
Fred of Melbourne Posted at 8:10 PM September 07, 2011
Oh stop picking on the rich you socialists, this is class warfare
Comment 25 of 28
Samuel Posted at 8:11 PM September 07, 2011
Assuming he never sleeps, his salary is only $570/hr. You guys can shout, but nothing will happen. Next year he will get another $1m rise. Every year this happens to the bank bosses, and all companies, and they talk about improving productivity! Shame on you Joyce and the man who brought you to Qantas. You have deteriorated the quality of the airlines, damaged the brand, even with lower oil price now, you have not reduced the surcharge, you have not delivered any dividend. How can you take this? can someone find out, which company recommended this pay rise before the board approved it.
Comment 26 of 28
zella of Adelaide Posted at 8:17 PM September 07, 2011
Alan Joyce you have your snout in the trough while you don't want to give your staff a pay rise and sacking others,get your snout out and decline your huge wage increase and share it among the staff,after you sit in your big office chair,while the staff do all the work
Comment 27 of 28
Ivo of Melbourne Posted at 8:25 PM September 07, 2011
This is madness, company is sacking hundreds of people and pays CEO $2 million bonus? For what? I would understand $100,000 bonus but $2,000 000?????
Comment 28 of 28