Like to see this happen at CX................
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Like to see this happen at CX................
Qantas: Alan Joyce to forgo bonus and pay rise
Alan Joyce, chief executive of Qantas, has said he will forgo his bonus and pay rise after a sharp plunge in the airline's profits.
Qantas has forecast a 90% fall in its profits for the financial year ending 30 June, amid losses at its international operations and high fuel costs.
The firm has also been hit by a series of strikes and labour disputes.
The troubles have seen its share price drop 35% since April this year.
"It's absolutely appropriate that when company returns go down, executive pay should go down as well," Mr Joyce was quoted as saying by the Australian Financial Review.
"It has been an extremely tough year for Qantas shareholders and what we want to show is that my pay has to have a huge correlation with the profitability of the company."
When contacted by the BBC, Luke Enright, a spokesman for Qantas, confirmed the comments.
The firm is scheduled to announce its earnings for the last financial year on 23 August 2012.
Further pain?
Continue reading the main story
“Start Quote
This is a clear signal that there will be further attempts to cut labour costs at Qantas' home base”
Michael McCarthy CMC Markets
One of the biggest areas of concern for Qantas has been its international operations. Full year losses at the division are expected to rise to A$450m ($470m; £300m).
Amid such losses, the airline has announced various restructuring measures including plans to split its international and domestic operations into separate entities.
The carrier has also announced jobs cuts as part of its efforts to cut costs.
Analysts say that Mr Joyce's decision to give up his bonus and pay rise, indicate that further cost-cutting measures may shortly be introduced.
"This is a clear signal that there will be further attempts to cut labour costs at Qantas' home base," Michael McCarthy, chief market strategist at CMC Markets in Sydney told the BBC.
"There will be pain for Qantas workforce within the next 12 months."
Mr McCarthy added that Mr Joyce's decision demonstrated "his commitment to revive the business, even if it takes personal sacrifices".
Alan Joyce, chief executive of Qantas, has said he will forgo his bonus and pay rise after a sharp plunge in the airline's profits.
Qantas has forecast a 90% fall in its profits for the financial year ending 30 June, amid losses at its international operations and high fuel costs.
The firm has also been hit by a series of strikes and labour disputes.
The troubles have seen its share price drop 35% since April this year.
"It's absolutely appropriate that when company returns go down, executive pay should go down as well," Mr Joyce was quoted as saying by the Australian Financial Review.
"It has been an extremely tough year for Qantas shareholders and what we want to show is that my pay has to have a huge correlation with the profitability of the company."
When contacted by the BBC, Luke Enright, a spokesman for Qantas, confirmed the comments.
The firm is scheduled to announce its earnings for the last financial year on 23 August 2012.
Further pain?
Continue reading the main story
“Start Quote
This is a clear signal that there will be further attempts to cut labour costs at Qantas' home base”
Michael McCarthy CMC Markets
One of the biggest areas of concern for Qantas has been its international operations. Full year losses at the division are expected to rise to A$450m ($470m; £300m).
Amid such losses, the airline has announced various restructuring measures including plans to split its international and domestic operations into separate entities.
The carrier has also announced jobs cuts as part of its efforts to cut costs.
Analysts say that Mr Joyce's decision to give up his bonus and pay rise, indicate that further cost-cutting measures may shortly be introduced.
"This is a clear signal that there will be further attempts to cut labour costs at Qantas' home base," Michael McCarthy, chief market strategist at CMC Markets in Sydney told the BBC.
"There will be pain for Qantas workforce within the next 12 months."
Mr McCarthy added that Mr Joyce's decision demonstrated "his commitment to revive the business, even if it takes personal sacrifices".
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I don't believe it
Don't trust a word from A.J.
This is the guy that got a big bonus plus a big pay rise in the immediate aftermath of the lockout embarrassment.
If this is the "bonus & payrise" refered to in the article, then this is merely a case of bowing to public, shareholder & media pressure! Nothing to do with him being a good guy
In fact, he should get a pay cut for the way that he has presided over the downward slide of QF.
This guy is cut from the exact same cloth as a previous CX CEO who's name was jokingly modified as "downturn-bull". Anyone who's been in CX more than about 5 years will remember him & agree.
This is the guy that got a big bonus plus a big pay rise in the immediate aftermath of the lockout embarrassment.
If this is the "bonus & payrise" refered to in the article, then this is merely a case of bowing to public, shareholder & media pressure! Nothing to do with him being a good guy
In fact, he should get a pay cut for the way that he has presided over the downward slide of QF.
This guy is cut from the exact same cloth as a previous CX CEO who's name was jokingly modified as "downturn-bull". Anyone who's been in CX more than about 5 years will remember him & agree.
Ahh yes, David Downturn. Presided over the 'sign or be fired' then the 49er debacle which is still costing the company money today. Then his successor, bent on turning the airline into 'Mong Kok Airways'. And the cheap and nasty Business Class product we have now isn't doing the airline much good either.
Last edited by Captain Dart; 20th Aug 2012 at 23:03.
