When Alan Joyce, the former CEO of Qantas, stepped down in September, it wasn’t just the end of his tenure at the helm of Australia’s national airline.
It also marked the beginning of a significant financial setback for him.
Joyce saw his expected bonus slashed by a staggering $9 million, following a harsh review that pointed fingers at his leadership for tarnishing Qantas’ reputation.
The decision to cut Joyce’s bonus came after a detailed review highlighted significant management errors that led to what it described as “reputational and customer service issues” for Qantas.
The airline’s board revealed that his long-term bonus of $8.36 million, covering 2021-2023, was entirely scrapped, and his short-term incentive of $900,000 was reduced by a third.
Despite having led the airline for 15 years, Joyce walked away with just $1.8 million.
The review, initiated amid growing criticism from customers, investors, and politicians, painted a picture of a leadership style that was overly centralized and dominated by Joyce.
Conducted by Tom Saar, a former McKinsey partner, the review concluded that Qantas’ leadership had fostered a top-down culture that discouraged open dialogue and empowerment among its employees.
While the report stopped short of accusing anyone of intentional wrongdoing, it underscored the need for significant changes within the company.
Qantas has faced a series of scandals in recent years, from the illegal sacking of nearly 2,000 airport workers to a spate of canceled flights and lost luggage, not to mention accusations of overcharging customers.
These issues culminated in Joyce’s decision to step down earlier than planned, paving the way for Vanessa Hudson, the former chief financial officer, to take over as CEO.
Controversial Stock Sale
Adding to the controversy, Joyce sold $17 million worth of Qantas shares just days after the airline provided information on canceled flights to the Australian Competition & Consumer Commission.
The review criticized this action, suggesting that there should be greater scrutiny of share dealings by the CEO and the executive team.
Moving Forward with Reforms
John Mullen, the incoming Qantas Chairman, remarked that Joyce’s pay cut and the broader reforms were signs that the airline was making the necessary changes.
He emphasized the importance of the board learning from past mistakes to restore the trust and confidence of Australians.
Mullen acknowledged that as the national carrier, Qantas has a duty to act in the best interests of its stakeholders and to uphold the highest standards of accountability.
A Commitment to Rebuilding Trust
Vanessa Hudson, upon taking over as CEO, publicly apologized to customers, admitting that Qantas had not met expectations and had become difficult to deal with.
She acknowledged the frustration felt by many and the loss of trust in the airline.
Hudson made it clear that Qantas was committed to addressing these issues, improving the customer experience, and better supporting its employees.
She emphasized that the airline’s goal is to once again become a source of pride for Australians, not through words, but through actions and behavior.
TDPel Media
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