In response to the damaging effects of the last year on the company’s reputation, Australian carrier Qantas has decided to reduce the bonuses of its former CEO Alan Joyce.
The decision was taken after a review was conducted in 2023 to examine the culture and actions of the company, which is known as the Flying Kangaroo.
During his time as the CEO, Joyce was accused of selling off ghost flights and illegally dismissing thousands of workers.
After 15 years of leading the company, Joyce resigned from his position last year.
The main target of investor and passenger anger was revealed to be the amount of money that the Irish executive was expected to receive when he left.
This caused a shareholder rebellion, with over 80 percent of the company’s shareholders opposing the pay policy.
A review conducted by Tom Saar, a partner at McKinsey, revealed that the company’s culture and actions were partly responsible for the crisis that occurred in 2023.
It also noted that the long-tenured CEO’s style contributed to the issues. Despite being financially stable and strategically focused, the board did not have the necessary focus on the company’s employees and customers.
The board of Qantas decided to reduce the bonuses of its former CEO Alan Joyce in response to the recommendations of the review.
The decision was taken after the company’s reputation was damaged during the pandemic.
Short-term bonuses for executives were slashed by around a third, amounting to around A$4.1 million, including almost A$1 million in bonuses given to Joyce.
The board also decided to reduce Joyce’s long-term incentive bonus, which was due between 2021 and 2023, by about A$8.4 million.
However, even after the cuts, he still received a total compensation of A$14.9 million for the financial year that ended in June 2023.
Incoming chairman of Qantas John Mullen said that the changes will allow the new management team to restore the company’s pride.
He noted that the board must learn from its mistakes in the past and ensure that the actions taken now will be followed by a more ethical and sustainable approach.