Shock horror - the boss is taking a pay freeze

[Chris2303]

https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12315366

"Chief executive of coronavirus-hit Qantas Alan Joyce is giving up his salary for the rest of the year."

[Dempster]

https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12315366

"Chief executive of coronavirus-hit Qantas Alan Joyce is giving up his salary for the rest of the year."


I believe it’s for the rest of the financial year. A whopping 3 months.

[normanton]

Does that mean he will only earn $18m this year?

[SecretAngel]

Does that mean he will only earn $18m this year?

Yeah, he can probably ride this one out. In fairness, they've also cancelled all management bonuses for the year so, combined with no salary for three months, he's probably only taking home a measly $3.75m for the year.

Basically starvation wages.

[Paragraph377]

As I said in the ANZ thread, the same principle applies to Wantas;

“Don’t be fooled by such supposed generosity - a pay freeze is a mild haircut. What they don’t tell you is that Joyce still gets share options (even if they drop in value, they are still free for him!), he gets a sign-on bonus, retention bonus, performance bonus and then a bonus based on profit/revenue. DO NOT BE FOOLED. This CEO is still earning millions!!!!

its a game of smoke and mirrors. It’s a joke.

[SecretAngel]

As I said in the ANZ thread, the same principle applies to Wantas;

“Don’t be fooled by such supposed generosity - a pay freeze is a mild haircut. What they don’t tell you is that Joyce still gets share options (even if they drop in value, they are still free for him!), he gets a sign-on bonus, retention bonus, performance bonus and then a bonus based on profit/revenue. DO NOT BE FOOLED. This CEO is still earning millions!!!!

its a game of smoke and mirrors. It’s a joke.

Well, they've zeroed out bonuses for the year as well so, unless you know something, at face value he's not getting any of that either...

[Chris2303]

I believe it’s for the rest of the financial year. A whopping 3 months.

"Annual management bonuses set to zero for this financial year which ends on June 30."

[Paragraph377]

Well, they've zeroed out bonuses for the year as well so, unless you know something, at face value he's not getting any of that either...
It’s all in the fine print. The term ‘bonus’ can refer to a number of different bonuses an executive receives. ‘Performance bonus’ is just one of those bonuses. There are also ‘Executive incentives’ or ‘incentive payments’ also, which are just another term for ‘bonus’ with without the ‘bonus’ stigma attached. You said it yourself SecretAngel - ‘face value’. That’s a good term. Most executives are remunerated in a way that at ‘face value’ seem to be average, standard, or normal. Mr Joyce has a remuneration package which is far above ordinary. Don’t be fooled by announcements of ‘pay freezes’ or ‘removal of bonuses’. Annual management bonuses are usually linked to operations KPI’s and do not usually incorporate retention bonuses, sign-on bonuses and so on. I think some of you are being openly fooled by the corporations wording. Smoke and mirrors.

[glenb]

Having absolutely no idea about the sharemarket or how it operates, this may simply be me,showing my naivety.

Dont shareholders have an ethical responsibility in all this. As their returns depend very much on the peaks and troughs of the Companies performance, don't they have an opportunity to step up and display good intention and ethics, and stand behind the staff that play in an integral role in the Company performance. Surely a case could be put to them by Mr Joyce and the PM encouraging them to stand behind this Company.

By standing behind the staff and protecting the employment of fulltime, part time and casual staff, but perhaps accepting a significantly reduced dividend for the short term it would be a noble gesture. A great opportunity for shareholders to make a bold statement and take some commercial pressure of the decision making process. Send a clear message that the shareholders are fully supportive of the Company and staff.

Once its all over, as it will be, it would be a great way to move forward collaboratively.

Ive had an opportunity to fly QANTAS fairly regularly until recent times, and there is no doubt its an exceptional team portraying an admirable corporate image. Every time i flew with them i was impressed on every occasion about how much they share the Companies vision. I know that the salries have been somewhat of a controversial issue but as a customer, i never sensed any disenchantment among the staff.

[normanton]

Ive had an opportunity to fly QANTAS fairly regularly until recent times, and there is no doubt its an exceptional team portraying an admirable corporate image. Every time i flew with them i was impressed on every occasion about how much they share the Companies vision. I know that the salries have been somewhat of a controversial issue but as a customer, i never sensed any disenchantment among the staff.
I think it's fair to say the employees are very loyal to the brand. Not so much management. Management come and go, but the brand and it's image goes on.

[Foxxster]

The dividend for this next reporting period will no doubt be reduced in line with the expected reduction in profit. As for shareholders voicing their opinions, there are strict rules around calling meetings etc or putting resolutions to management. And anyway ultimately it is a management decision about how much to pay out. That is what they get the big bucks for. Having said that, any company is loathed to reduce dividends as it sends a bad signal to the shareholders and the market in general about the ongoing profit levels of the company. But I would fully expect a reduction in Qantas dividend as well as a number of other companies for the next reporting period. Read companies like Woodside etc.

[PPRuNeUser0131]

“Dont shareholders have an ethical responsibility in all this”

No Glenb, they don’t. Shareholders, unless they hold an amount of shares that may have an impact on an AGM, are just along for the ride.

The group which should hold some form of responsibility is the Board of Directors.

And they should be held to hold the same responsibilities as a Trustee has to his/her beneficiaries.

As in, misuse money to benefit yourself over the persons to whom the duty is owed means some severe sanctions.

In the case of the company, the duty should be owed to the shareholders, for example not to authorise the CEO to walk off with some eye-watering bonuses for doing his/her job.

Nor as Directors to give themselves nice little thank-myselfs like free overseas hols for doing their job. Nor authorise over the market payments to act as a director via some form of Board committee to justify it.

That is the ethical part.

If anyone can provide a sample of it occurring in Australia since the Bond and Connell eras, I would love to hear of it.

[TBM-Legend]

https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12315366

"Chief executive of coronavirus-hit Qantas Alan Joyce is giving up his salary for the rest of the year."

Don't believe what you read in the fake news NZ Herald!

[No Idea Either]

It’ll just be DOUBLE bonuses next time around.....guaranteed.

[Ken Borough]

Reading here and elsewhere, it seems to me that Alan Joyce is on a hiding to nothing, no matter what he does. Is it not time for the critics and 'experts' to grow up?

[machtuk]

The little Leprechaun is cunning, there will be an ace or two up his sleeve!
CEO's are a breed all on their own!

[V-Jet]

Is it not time for the critics and 'experts' to grow up?

I've given AJ decades on the growing up task and he's failed as miserably at that as he's been successful in pilfering family silver away from the brand he is paid to be custodian of. It's a disgusting joke!

If he had the job of custodian of the Crown Jewels, he would have sold the lot - claimed the profit as justification for his salary, but kept the real estate and continued increasing fees to view the room! AND - he'd get the staff to vote for a pay cut to keep copping abuse from the public to see the empty room. It's a disgrace, but you have to admire the chutzpah of the very wee (but very well compensated) "man'.

[172510]

Some thought to fuel the fire: when the times are difficult a manager should earn more because the job is more difficult. Or should be fired if he or she cannot handle the situation.

[The The]

AJ holds 2,980,810 shares with a 13.5c dividend payable on 9 April. So he’ll be getting a dividend cheque for $402,409.00. That should see him through until 30 June.

[Buster Hyman]

he's probably only taking home a measly $3.75m for the year.

Basically starvation wages.
#prayforallan

[Derfred]

Ken, you must have a short memory.

Last time there was a drop in the share price the Board re-jigged the CEO’s bonus plan from “short-term” to “long-term”. It’s all in the annual reports.

That is, give him lots of low-priced share rights now that he can’t exercise for 3 years, when the market recovers.

[NumptyAussie]

It’ll just be DOUBLE bonuses next time around.....guaranteed.

Are you willing to underwrite the guarantee? If so, by how much?

[Daddy Fantastic]

Im starting a Go Fund me page for Allan Joyce...please give all that you can!!

[The Baron]

Probably just run out of places to hide his loot. Too many lumps in the mattress.

[gordonfvckingramsay]

Maybe he’s starting to realise that no one believes his BS anymore and he certainly can’t win another war against his pilots without public opinion on his side. And so a collective “nawwww, he’s such a nice guy” was heard from the punters...

[poporange]

It is time to give more benefits to it's employees who have been loyal and truthful to their jobs!

[dr dre]

Maybe he’s starting to realise that no one believes his BS anymore and he certainly can’t win another war against his pilots without public opinion on his side. And so a collective “nawwww, he’s such a nice guy” was heard from the punters...

The wider public doesn’t give a toss what happens to Qantas employees. We are facing a recession. Everyone is going to be too worried where their next pay cheque is coming from to worry about an industrial dispute they aren’t involved in.

Everyone in the nation now has bigger fish to fry.

[normanton]

Maybe he’s starting to realise that no one believes his BS anymore and he certainly can’t win another war against his pilots without public opinion on his side. And so a collective “nawwww, he’s such a nice guy” was heard from the punters...
Lol yawn. Get a reality check mate. Given the current circumstances any public PIA will be laughed at.

[Ollie Onion]

Maybe he’s starting to realise that no one believes his BS anymore and he certainly can’t win another war against his pilots without public opinion on his side. And so a collective “nawwww, he’s such a nice guy” was heard from the punters...

get over yourself, Joe Public don’t give a toss about Qantas Pilots and their huge paychecks moaning about their nasty boss ONLY offering them a 3% pay rise. I for one am glad to be in an airline group that seems well placed to ride this global disaster out, this is not the time to be bitching about industrial issues.

[FlexibleResponse]

Ollie Onion "...this is not the time to be bitching about industrial issues."


This is exactly the time to bitch about industrial issues.

This Corona virus event is one of those black swan events that management have wet dreams about. They will use this event as an excuse for covering up previous mistakes and dreadful performance, washing their dirty linen and clearing the decks for future growth.

Then they will all draw performance bonuses as heroes when they valiantly "re-build" the share price after the event.

The employees are just pawns to be played and sacrificed in the game of the recovery process leading to new executive bonuses.

[gordonfvckingramsay]

get over yourself, Joe Public don’t give a toss about Qantas Pilots and their huge paychecks moaning about their nasty boss ONLY offering them a 3% pay rise. I for one am glad to be in an airline group that seems well placed to ride this global disaster out, this is not the time to be bitching about industrial issues.

Yeah, my bad.

Alan did this for purely altruistic reasons, nothing to do with seizing an opportunity to look good in a time of crisis while simultaneously using that crisis to fvck staff.

[markontop]

Pay cut/wage theft?
Alan Joyce takes a pay cut yet commits worker wage theft - nice.