Wirraway
22nd Sep 2002, 16:43
Mon "Australian Financial Review" 23/9/02
Qantas high-flyers take home seven-figure packages
Sep 23
Jane Boyle
Former Qantas chief executive James Strong walked away from the airline with a $3.65 million golden handshake, mainly in termination payments after he stepped down in March last year, the airline's just released annual report shows.
His successor, Geoff Dixon, collected $2.45 million, including a $1million performance bonus for fiscal 2002, when Qantas seized more than 80 per cent of the domestic market after Ansett collapsed.
Chief financial officer Peter Gregg received $1.42 million, including a $672,000 performance bonus, and three other of the airline's most senior executives, Paul Edwards, John Borghetti and David Forsyth, each received more than $1 million, including bonuses.
Mr Dixon's base salary of
$1.42 million was the same as Mr Strong's the previous year. Mr Strong's payout was disclosed in the latest report because he remained an employee, providing consulting work, until July 31 last year.
The report shows several executives, some of whom assumed new roles, were paid more than the previous year when no performance bonuses were paid due to difficult conditions.
The airline also disclosed that it paid $1.88 million to David Burden, $1.34 million to Stephen Mann and $1.17 million to George Elsey, all of whom were former senior executives who left during the year.
Mr Dixon's pay cheque compares with the $NZ4.2 million ($3.6 million) that former colleague Gary Toomey received for nine months as Air New Zealand's chief executive, which ended with Ansett's bankruptcy.
The chairman, Margaret Jackson, received $362,487 of the $1.18 million that was paid to the airline's board of directors.
After awarding 350,000 entitlements to a group of senior executives in December last year, the company suspended its options scheme, as have several other major companies over the past two months.
The company will also seek shareholder approval for a new deferred share plan for 860 executives.
Under the plan, Mr Dixon and Mr Gregg could be awarded bonuses to buy up to 340,000 and 210,000 shares respectively, subject to meeting performance hurdles this financial year.
The airline's shares ended 3¢ lower at $3.94 on Friday, their lowest point since before the collapse of the Ansett rescue plan in February, due to concerns about a war against Iraq and a potential new domestic entrant.
The fall has pushed its $800million rights issue at $4.20 a share further under water, and jeopardised the $200 million retail component, which is due to close on Friday.
Qantas high-flyers take home seven-figure packages
Sep 23
Jane Boyle
Former Qantas chief executive James Strong walked away from the airline with a $3.65 million golden handshake, mainly in termination payments after he stepped down in March last year, the airline's just released annual report shows.
His successor, Geoff Dixon, collected $2.45 million, including a $1million performance bonus for fiscal 2002, when Qantas seized more than 80 per cent of the domestic market after Ansett collapsed.
Chief financial officer Peter Gregg received $1.42 million, including a $672,000 performance bonus, and three other of the airline's most senior executives, Paul Edwards, John Borghetti and David Forsyth, each received more than $1 million, including bonuses.
Mr Dixon's base salary of
$1.42 million was the same as Mr Strong's the previous year. Mr Strong's payout was disclosed in the latest report because he remained an employee, providing consulting work, until July 31 last year.
The report shows several executives, some of whom assumed new roles, were paid more than the previous year when no performance bonuses were paid due to difficult conditions.
The airline also disclosed that it paid $1.88 million to David Burden, $1.34 million to Stephen Mann and $1.17 million to George Elsey, all of whom were former senior executives who left during the year.
Mr Dixon's pay cheque compares with the $NZ4.2 million ($3.6 million) that former colleague Gary Toomey received for nine months as Air New Zealand's chief executive, which ended with Ansett's bankruptcy.
The chairman, Margaret Jackson, received $362,487 of the $1.18 million that was paid to the airline's board of directors.
After awarding 350,000 entitlements to a group of senior executives in December last year, the company suspended its options scheme, as have several other major companies over the past two months.
The company will also seek shareholder approval for a new deferred share plan for 860 executives.
Under the plan, Mr Dixon and Mr Gregg could be awarded bonuses to buy up to 340,000 and 210,000 shares respectively, subject to meeting performance hurdles this financial year.
The airline's shares ended 3¢ lower at $3.94 on Friday, their lowest point since before the collapse of the Ansett rescue plan in February, due to concerns about a war against Iraq and a potential new domestic entrant.
The fall has pushed its $800million rights issue at $4.20 a share further under water, and jeopardised the $200 million retail component, which is due to close on Friday.