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Transition Layer
21st Sep 2009, 03:13
Qantas ex-boss paid $11m
MATT O'SULLIVAN
Sydney Morning Herald
September 21, 2009 - 11:20AM

Qantas’s former boss, Geoff Dixon, is expected to draw the ire of shareholders and staff for the second year running after it emerged today that he pocketed a salary of almost $11 million despite serving only five months as chief executive last year.

Mr Dixon’s total salary of $10.7 million in 2008-09 – down 12 per cent on the previous year – included a base salary of $1.86 million and $657,500 in termination benefits. He was replaced as CEO last November by Alan Joyce, but did remain as a consultant to Qantas until March 31.

Qantas’s annual report, released today, also shows that former chief financial officer, Peter Gregg, pocketed $4.9 million after serving just three months in the role last financial year. His salary included $1.76 million in termination benefits.

Mr Gregg, the key architect of the airline under Mr Dixon, was replaced at the end of last September after eight years as chief financial officer by Colin Storrie, who earned $1.6 million for the year to June.

Mr Joyce, an Irishman who was previously the boss of Jetstar, earned $3.7 million for the year to June, compared with $5.1 million in 2007-08.

Qantas former third-in-charge, John Borghetti, had a total package of $4.9 million, compared with $5.8 million in the previous year. Mr Borghetti departed in April after 36 years at the airline, erasing the last vestiges of the Geoff Dixon era at Qantas.

The airline’s former human resources chief, Kevin Brown, also took home $3.4 million in 2008-09, down only slightly on the year before. Mr Brown also left Qantas several months ago, taking a job at the Federal Government’s National Broadband Network Company.

Qantas’s largesse towards its former executives will be galling for staff who for years have been told to tighten their belts to improve the airline’s competitiveness.

The airline has laid off up to 3250 workers over the past 18 months, and recently announced $1.5 billion in spending cuts over three years, including $500 million this financial year. It follows $3 billion in cuts over the previous five years.

Last November Mr Dixon had to face the ignominy on his last day of more than 40 per cent of shareholders voting against his $12 million salary and the pay packets for his senior executive team. At the time, influential governance adviser RiskMetrics had urged a vote against the executive pay deal because of Mr Dixon’s ‘‘excessive’’ cash-based payments.

Mr Dixon’s salary in 2007-08 made him the world's highest-paid airline executive in cash terms, beating the likes of Gerald Arpey, the chief executive of the world’s largest commercial carrier, American Airlines.

[email protected]


Is anyone at all surprised? :sad:

VBPCGUY
21st Sep 2009, 03:49
Nope Geoff Dixon was a highway robber.

surfside6
21st Sep 2009, 04:26
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.

another superlame
21st Sep 2009, 04:43
We was a prick then and still is now!

QF94
21st Sep 2009, 04:50
Nope Geoff Dixon was a highway robber.

Good riddance to bad rubbish. Hopefully we don't see the likes of him again.

The best thing he ever did for QANTAS was to leave it.

QF94
21st Sep 2009, 04:56
Mr Joyce said Qantas had worked hard to restore its reputation after damaging industrial action and two major inflight incidents last year.

Industrial action that was totally avoidable, but for the arrogance of our former CEO. Spending $150M to save $5M, just because he didn't want to give in to us.

Inflight incidents. Well I guess that's what happens when you cut back on local maintenance, outsource it and pay peanuts.

How long will management keep blaming the "Industrial Action" for their own incompetence? The excuse must surely be wearing very thin now.

Chronic Snoozer
21st Sep 2009, 06:09
Disgust. :yuk: With a smidge of indifference. :rolleyes:

When are we as a society going to break the daisy chain of fat cats looking out for noone but themselves??:ugh::ugh::ugh:

bubble.head
21st Sep 2009, 06:26
This is really interesting, isn't it?

Looking at our society today, where we are at the edge of a financial meltdown, we have corporate CEOs more concern about their pay and bonuses then their company's fellow workers. Only the past year where Dixon and co. cries poor and went on a firing spree to axe 2000+ workers, went on an on-going pay dispute for engineers because they didn't want to pay them on a better condition, and only recently where they said to have a surplus of pilots and wanted the AIPA to figure out a cost saving method so they "don't have to fire anyone".

Now we hear that dixon receives 11million dollar for 5 months work. It wouldn't be a grudge if he deserves it. However, his past work has brought this company down in many levels. This prik certainly don't deserves a cent!

It is nice to know that for all those who lost their jobs for the future survive of this company, had only lost it for the bonuses of this devil in disguise!

Flyingblind
21st Sep 2009, 06:42
FOG just not go away! i mean enough already - just disappear!

skol
21st Sep 2009, 08:09
Gary 'absolutely' Toomey will be wishing he'd stayed with QF so he could have had his snout in the trough as well.
Unfortunately for Gary he's slumming it in AYPY, hope he's got the .45 handy.

Ultralights
21st Sep 2009, 08:11
next year how about we all move the birdsville races crowd to a little pub in Wagga! tell em its free piss all night!

Qantas 787
21st Sep 2009, 09:29
Funny how Borgetti and Gregg are immune from criticism - they got a million more than Joyce!

DEFCON4
21st Sep 2009, 09:42
Having met all three of these individuals it is safe to say that Dixon is responsible for the staff disengagement at Qantas.Borghetti is a delightful person and while Gregg is not the most personable he beats Dixon hands down.
Dixon has a problem with his larynx...he is only able to grunt.
It has been suggested that old scrotum face was the most overpaid sociopath on the planet.Makes you wonder what sort of childhood he had.
His parents have a lot to answer for

Aim Point
21st Sep 2009, 09:58
A cheap price to pay to get him to leave.:D
Someone should have given it to him earlier - would have saved QF a fortune.:mad:

C441
21st Sep 2009, 10:06
Funny how Borgetti and Gregg are immune from criticism - they got a million more than Joyce!

At least John Borghetti contributed 36 years or more of dedicated service to what was once a Premium service business.

He was the last executive to see a place for the Premium model Qantas. He left when he realised "the monkeys had taken over the zoo" (close to a quote attributed to the man himself I believe).

ditch handle
21st Sep 2009, 10:17
Dickson's salary was described on the ABC news as $100 000 a day or the average yearly Australian wage earned :rolleyes: before lunchtime.

Bastard.

my oleo is extended
21st Sep 2009, 11:49
Interestingly, most of the posts on this thread relate to the blood sucking parasite known as Dixon. And how correct you all are.
Some posts defend his other overpaid Lieutenants, strange that, but anyway quite interesting. They are equally guilty of bleeding the system and supporting Commandant Dixons decisions, which included outsourcing, wage cuts, staff downsizing and so-on.
But what about the ridiculous old farts in tweed coats and bowling hats, the Investors, who have continually supported these high paid executives out of their own greedy desires ? Continually voting them in at investor meetings, allowing the Executives to become bloated with wealth as a reward for driving up share prices ? No mention of this group of scum.
Well its interesting now that the Grim Reaper has called - Economic Downturn, and now these same old buffoons are realing in their losses as their precious Qantas shares are slowly but surely stripped of value in an ailing economy. Not only will these old fools be left holding depreciated shares and a financial loss, but they get to fly on a now sub standard poor excuse of an airline ! Now that is funny !
Karma - what goes around comes around. There are many guilty of bleeding Qantas, and Joyce and his new era of cronies are no different, its all about self preservation, self ego, self wealth and basically ones self.

my oleo is extended
21st Sep 2009, 12:01
You better all hang on becuase the ride is far from over. A high level decision at the Roo has been made to cull another 2000 employees who dont know it yet. All will be revealed in the very near future.

cocoair
21st Sep 2009, 12:26
Well those staff cut backs are certainly being felt. My family has only flown the Roo twice in last five years - and twice there were major delays. The last one on Saturday night was a doozy - delayed 12 hours to Sunday morning due to pilot sickness. On the taxi out delayed another fours hours due to "technical problem." I'm sure the HR guy earned all those millions :}- pity more is not being spent on the people at the coal face though to ensure passengers get from A-B. Qantas used to be looked up to in the aviation world - now it is a laughing stock

my oleo is extended
21st Sep 2009, 12:38
I agree. Money should be spent on the coalface, but that wont happen. The place is now JQ MK 2. Alan also picked the eyes out of JQ and took his hand picked conga line with him to QF. The reason ? Simple. Slash slash and slash ( except Executive salaries) . His troupe will and have been crunching the numbers so as to adopt the same low cost structure as JQ. Its getting worse daily. More delays, less staff, poor morale and most areas are overworked and under resourced.Yep, thats the JQ model.
But hey, why should Alan care. You and I would gnaw down on a turd sandwich to earn what the QF exec`s earn, so of course they dont care what happens up front. VB is in a deep hole that gets deeper daily due to it being run by an Egomaniac, The Rat is running at a loss, while JQ props up the earnings, incredible as it sounds. Tiger is as bad as JQ for service, and it too is bleeding cash, so the future of travel in AUS doesnt look exciting does it ??

parabellum
21st Sep 2009, 12:52
But what about the ridiculous old farts in tweed coats and bowling(sic) hats, the Investors, No mention of this group of scum.



Far from being 'old farts' in tweeds the major investors are large financial institutions, like insurance companies, commercial banks and financial conglomerates put together specifically to invest in major companies, their surprisingly young representatives will usually be dressed in Armani suits and driving a company Porsche. Using their block votes these major players can ensure that the 'old farts in tweeds' whose investment, by comparison, is minuscule but have kept the faith with QANTAS for years are voted down at any shareholders meeting.
The people massaging the egos of Dixon and Co and paying them obscenely large bonuses are city slickers, a different group of 'scum' altogether.

flying-spike
21st Sep 2009, 13:01
Rumour has it the first part of the new TV ad is TI for :
" We will retrench you wherever you are,
We'll cut back the payroll and stretch you too far,
We'll cut back the maintenance, you'll be safer by car,
But no matter how much you bitch and you groan,
The CEO will still take his millions home!"

Dashtrash
21st Sep 2009, 13:07
anyone who thinks you can't get pregnant from anal sex has never met Geoff Dixon.

my oleo is extended
21st Sep 2009, 13:19
Hey Spike, will it be sung with an Australian accent or an Irish accent ????
Maybe the kiddies in the add wont be dressed in white anymore, but wearing a tartan kilt instead ??

my oleo is extended
21st Sep 2009, 13:26
My apolgies parabellum, I did get a little emotional there, and I believe 'tweed' is out and RM Williams is in these days also... Could you please confirm ??
I wouldnt invest a cent of my own cash into any airline, they are all high risk with low return. However I am happy to keep accepting freebies from the Rat, even if they will be worth less than VB`s in the near furture.

flying-spike
21st Sep 2009, 13:27
AJ doing his best "Riverdance" moves dressed in nothing but a pink feather sporran whilst flicking the last remaining QANTAS Aussy dollars into a muddy Irish bog.

600ft-lb
21st Sep 2009, 22:17
Is AJ really all that bad ?

Yes he is the CEO of Qantas, he does have a job to do. He has started the process of removing all of the scams that Dixon put in place, Lean Sigma.. Gone. Middle managers for middle managers.. Gone. The entire management 'team' that was a part of the debacle of orchestrated engineering PIA.. Gone. A timely decision on keeping heavy maintenance in Australia.. Done. Bring the CORE businesses back into the Qantas fold (Engineering).. Done At least in that last point, the 'business unit' we work for has an identity now that reflects what it does. ETOMS???????? Does that make any sense to anyone who hasn't been sat down for a name change meeting by middle management ?

At least he will come out and tell everyone what he is doing, Dixon liked to rule by fear and uncertainty. He would put across to the troops that Qantas is about to go belly up yet there ended up being a ratio of 1 manager per 20 workers under his reign who would shuffle the money around from department to department and say 'look I've saved x $million thanks for the 'performance' bonus'.

Dixon had ongoing reviews after reviews, he would get his consultancy mates to come in, put the fear of losing your job because it could be made to look easily by juggling the books that it can get done cheaper elsewhere and at the last minute give the workers another 2 year reprieve, pending review.

How much money did Dixon spend on 'consultants' ?
How much money did Qantas mainline have to pay in fines last year ?
What has happened to Lean Sigma ? All quiet on that front, I thought it was an integral part of the strategy map.
How much money did Qantas spend on unnecessary middle management ?
Who signed the Telstra IT contract with those stupidly high fees ?
EQ cost how much ? Does it work ?

AJ might be a smiling assassin but he's obviously a shrewd business man, if Dixon was in charge it'd be a case of more management to sort out how to outsource more. If AJ were running it from the start Qantas might have quite a few more BILLION dollars in the bank and all of us front line staff would be gainfully employed.

Shlonghaul
21st Sep 2009, 22:20
Is it true that Darth had an @rsehole transplant but the @rsehole rejected him? :E

hadagutful
21st Sep 2009, 23:10
I think comments before me sum up Dixons character and attitude quite well, N-BW particularly colourful but spoken from the heart no doubt.

I think only one word sums it up........GREED, disgusting greed and in fact robbery may even be a better word.

How the shareholders let him get away with that is astounding if indeed they knew it was happening.

And to think I am flying QANTARSE to Perth (only because there is no alternative) in a few weeks.

I will take my seat with shame, with all due respect to the staff.

Beeroclock
22nd Sep 2009, 00:13
Pilots are the same..Only sad thing is we are trying to screw each other in the opposite direction...Those people S*it me just as much as the greedy fat cats..All about themselves,"oh but least it gets me into a jet"....

Aviation really is full off people all trying to screw over each other for personal gain...We really need to look at other industries and follow there lead look at mining even the cleaner earns a healthy wage!!

lowerlobe
22nd Sep 2009, 00:28
I noticed the other day that the CEO of another large well known Australian company just gave himself a 19% pay rise.This was despite the fact of a significant drop in profit and a corresponding drop in share price....

This shows that some at least of corporate Australia have not learnt the lessons of the current GFC.....

This is the 'Me' era and it applies to every level of society in which just about everyone wants to know what is in it for them.....

The problem is that the corporate sector actively engages in a course to limit what those below them earn while at the same time lining their pockets with every cent they can get...

bulstrode
22nd Sep 2009, 01:24
Dixon is the poster boy for obscene sense of entitlement that has been displayed by corporate Australia.His pay out was made all the more worse by its timing.We have the GFC where everyone is rapidly going backward financially except Dixon.
An absolute disgrace

stubby jumbo
22nd Sep 2009, 03:32
To think I was having a good day-'till I read this news.

This is an ABSOLUTE DISGRACE. To think that over 2,500 Qantas staff have been punted over the past 18 months! How much would their salaries be? Rough guestimate= 150 people x ( avg salary) $80,000= $12m

Thats the payout equivalent. 150 people could be still working :=

Shame. Hasn't this person any morals? And what is even more galling is to hear that one of his current gigs is consulting to SEABURY ....the same parasites who were organising the APA bid.

So much for all the cut backs, belt tightening, Sustainable future clap trap. We have all been sold a pup.:ouch:

Greed is good. Long live Gordon Gecko.:yuk:

OneDotLow
22nd Sep 2009, 05:25
Hasn't this person any morals?

Nope... This man is lower then the lowest of pond scum. He wouldn't even know what morals are.

packrat
22nd Sep 2009, 06:15
Dixon did attend all 8 scheduled remuneration meetings in an ex officio capacity.The remuneration committee was the busiest .Even more so than board meetings of which there were only 7.
Shows where managements focus was/is

Thylacine
22nd Sep 2009, 07:56
C'mon show some compassion.... click on link below. It will bring a tear to your eye.
CBD (http://www.smh.com.au/business/dixon-given-free-ride-for-missing-the-boat-20090921-fymw.html)

tail wheel
22nd Sep 2009, 08:30
I think this thread has reached its use by date?

It is now descending into the realms of libel and defamation.