Former Qantas CEO Alan Joyce takes home $3.4m in pay, bonuses as executive remuneration tumbles 40pc

Former Qantas chief executive Alan Joyce is set to keep reaping rich rewards from the airline he is accused of damaging under a bonus plan that saw him pocket $3.15m in long-term incentive plan payments last financial year.

The figure was revealed in Qantas’ 2022-23 annual report, published Thursday, which also showed he collected $381,000 as a base salary in the final 67 days of his tenure before he brought forward his planned departure to September 5, 2023.

Mr Joyce took home $14.9m the year before after more than $9m in short-term bonuses was stripped from his remuneration package under forfeiture provisions amid a wave of criticism that rocked the national carrier.

A review of key executive decisions following the turmoil quizzed senior executives over a litany of scandals that beset the airline during and after the pandemic and trashed its public image.

The most damning was court action launched by the Australian Competition and Consumer Commission over so-called “ghost” flights, with the watchdog claiming it sold tickets on more than 8000 services between May and June in 2022 that had already been cancelled.

Qantas was also found to have illegally sacked 1700 ground workers at the height of the COVID pandemic and copped a public backlash over sky-high airfares, poor customer service, lost luggage and delayed or cancelled flight in the months after coronavirus travel borders were lifted.

But Thursday’s annual report showed Mr Joyce is still entitled to payments under a long-term incentive plan scheme and he still has 353,956 rights — valued at $2.41m at Qantas’ current share price — under the 2023-25 long-term incentive plan.

Qantas last month said Mr Joyce had “overall accountability and responsibility for the outcomes of the business”.

“The events that damaged Qantas and its reputation and caused considerable harm to relationships with customers, employees and other stakeholders were due to a number of factors,” the airline said following a review.

“While there were no findings of deliberate wrongdoing, the review found that mistakes were made by the board and management which contributed to the group’s significant reputational and customer service issues.”

Like its rivals, the airline struggled to ramp up operations once domestic and international pandemic borders were lifted and was unprepared for the unprecedent wave of demand for travel after years of lockdowns.

Amid the chaos, it was also embroiled in the Federal Government’s shock decision to block a push for 28 additional flights a week into Australia by rival Qatar Airways, with suggestions the call was made to protect its profits amid heightened demand for international travel.

Business adviser Tom Saar was hired by Qantas earlier this year to carry out the review of the airline. He found there was excessive deference toward Mr Joyce, who had overcome previous crises, and decisions weren’t sufficiently challenged. There was also too much focus on financial and commercial goals and not enough attention on customers and staff, Mr Saar said.

Overall, Qantas’ executive pay plummeted from $35.4m in 2021-22 to $20.7m last financial year after the airline’s leaders copped an 83 per cent strike against remuneration from investors angered by the group’s poor operational performance and its very public shortcomings.

Chief executive Vanessa Hudson took home $4.4m — down from $6m a year earlier — including a base salary of $1.4m. Her long-term incentive bonus payment more than halved from $2.26m to $1.05m.

WA businessman Richard Goyder — who will retires as chair of Qantas on Monday after six year at the helm — collected $750,000.

Mr Goyder also faced the wrath of passengers, shareholders and unions over the scandals.

His staunch defence of Mr Joyce’s final tumultuous year at the helm raised eyebrows and ultimately led to his decision last October to step down, conceding the board needed to be held accountable for the issues plaguing Qantas.

In the annual report, Mr Goyder said Ms Hudson was resetting the airline’s leadership culture.

“While there will be challenges ahead, I firmly believe that Qantas is putting the right pieces in place to succeed for the long term,” he said.

He will be succeed by chair-elect John Mullen, a former chair for Telstra.