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Qantas mulls new pay structure for executives

Jamie Freed Sydney

Qantas Airways says it is considering new ways to structure pay to ensure it retains key executives as it enters the third financial year affected by the pandemic-driven slowdown in travel.

Qantas chair Richard Goyder said executives had faced a high workload with no annual bonuses for the past two years, and a continued wage freeze at a time when attrition was rising across the airline.

“Our executive cohorts are talented and in increasing demand across a range of industries, many of which, unlike aviation and tourism, are experiencing high rates of growth and activity, with financial rewards to match,” he said in the airline’s annual report.

In the case of CEO Alan Joyce and executive management, any incentive plan would take the place of the traditional annual bonus plan, Goyder said, adding that a decision was expected in the second half of the financial year.

Joyce’s total annual pay rose to A$1.97m in the 12 months ended June 30, up 13% from a year earlier, when he had taken a period of zero base pay, but his pay remained 80% below preCovid levels.

Joyce has said he expects to stay in his role until at least July 2023 to complete a three-year recovery plan.

In a separate note to staff, Goyder said the company would look to reward all employees if the recovery plan is completed successfully by that date.

“Nothing is finalised but we look forward to sharing more details in the first quarter of next year,” he said.

Other companies in the travel sector, including Flight Centre Travel Group and Air New Zealand, have offered shares to all employees as part of retention efforts.

INTERNATIONAL BUSINESS

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2021-09-20T07:00:00.0000000Z

2021-09-20T07:00:00.0000000Z

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