By C. Perera, JadeTimes News
Australian airline Qantas has announced a significant reduction in the exit package of its former chief executive, Alan Joyce, following a series of scandals and costly legal battles. The company informed investors that Joyce's multi million dollar payout will be slashed by more than 40%.
In addition to reducing Joyce's package, Qantas will cut short term incentives for both current and former senior executives by a third. This decision coincided with the release of a review into the company’s operations during Joyce’s tenure as CEO.
The airline acknowledged that various factors contributed to the incidents that tarnished Qantas’s reputation and damaged relationships with customers, employees, and other stakeholders. While the review did not find evidence of deliberate wrongdoing, it concluded that the board and management had made mistakes.
Initially, Joyce was expected to receive A$21.4 million after departing the company last year. However, his exit package will now be reduced by A$9.26 million. Joyce served as chief executive for 15 years, steering the company through challenges such as the 2008 global financial crisis, the COVID 19 pandemic, and record high fuel prices.
Despite his leadership during these crises, Joyce’s departure in 2023 came at a time when Qantas was facing mounting public dissatisfaction over high fares, widespread delays, cancellations, and its treatment of employees. The airline also lost a High Court case last year concerning the dismissal of staff during the pandemic, and in May, Qantas agreed to pay A$120 million to settle a lawsuit related to the sale of tickets for flights that had already been canceled.
Joyce had planned to step down in November but left the company two months earlier than scheduled. At the time, he stated that stepping down early was "the best thing" he could do, given the focus on past events. Joyce was succeeded by Vanessa Hudson, who became the first woman to lead Qantas in its 100-year history.
