In a significant move, Qantas has announced a drastic reduction in the exit package of its former chief executive, Alan Joyce, following a series of scandals and costly legal battles. The Australian airline will cut Joyce’s multi-million dollar payout by over 40%, slashing A$9.26 million from the total.
Why Is Qantas Cutting Alan Joyce’s Exit Package?
Qantas, which has faced mounting public criticism over various operational issues, revealed to investors that the payout cut comes as part of a broader review of the company’s governance during Joyce’s tenure. The airline also announced it would reduce short-term incentives for both current and former senior executives by a third.
The airline’s internal review cited several factors that contributed to the company’s tarnished reputation and strained relationships with customers, employees, and other stakeholders. While the review found no deliberate wrongdoing, it did acknowledge that mistakes were made by the board and management during Joyce’s time as CEO.
How Much Will Joyce Receive After the Cut?
Originally set to receive A$21.4 million ($14 million; £11 million) upon his departure, Joyce’s payout will now be reduced by A$9.26 million. The former CEO, who led Qantas for 15 years, had been due to step down in November 2023 but left the company two months earlier than planned. His early departure followed growing public anger over high fares, widespread delays, and mass cancellations.
What Led to Qantas' Current Troubles?
Under Joyce’s leadership, Qantas navigated through challenging periods, including the 2008 global financial crisis, the COVID-19 pandemic, and record-high fuel prices. However, the airline’s reputation took a significant hit in recent years. Qantas lost a High Court case last year regarding the sacking of staff during the pandemic, and in May, it agreed to pay A$120 million to settle a lawsuit related to the sale of thousands of tickets for flights that had already been canceled.
What’s Next for Qantas Under New Leadership?
Vanessa Hudson, who succeeded Joyce and became the first woman to lead Qantas in its 100-year history, now faces the task of steering the airline through these turbulent times. As Qantas attempts to rebuild trust and restore its standing, the company’s actions—such as the reduction of Joyce’s exit package—signal a commitment to addressing past mistakes and moving forward with greater accountability.
