(Reuters) -Australia’s Qantas will cut former CEO Alan Joyce’s fiscal 2023 pay through his long- and short-term incentives, the embattled airline said on Thursday, as it attempts to restore trust among investors and fix its reputation.
Joyce, who retired in September 2023, took home A$21.4 million in the 2023 financial year, according to the company’s annual report.
His pay will be reduced by A$9.26 million ($6.03 million), the Australian flag carrier said, adding that it will also trim short-term incentives for affected current and former senior executives by 33%.
“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 company said.
While the board failed to find any deliberate wrongdoings, the governance review found that the board had made “mistakes” that resulted in significant reputational and customer service issues, Qantas said.
The company has been beset with both legal and regulatory actions, that have led to growing calls from a number of unhappy investors for various management reorganisations.
Qantas in May agreed to pay A$120 million to settle a regulator lawsuit over the sale of thousands of tickets on already cancelled flights, in an attempt to end a reputational crisis that has engulfed the airline.
($1 = 1.5347 Australian dollars)
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