QF defends Joyce salary

QANTAS has defended the $24.6 million pay packet handed to its ceo Alan Joyce last year, linking its executive pay rises to a spectacular turnaround in the airline’s performance.

While wages nationally remain stagnant, the Qantas annual report released on Fri shows Joyce more than doubled his pay in the 2016/17 financial year to take a place among the country’s most highly paid business leaders.

In a statement, Qantas chairman Leigh Clifford acknowledged executive pay packets were high but said they were tied to performance targets for the carrier’s senior management.

“There is no question that these pay outcomes are high,” he said.

“That’s because they reflect the company’s exceptional performance, including our top ranking for total shareholder return among global airline peers and every company on the ASX100,” he said.

The airline’s share price had risen by 350% over the past three years and the value of executive bonuses - mostly paid in QF shares - had risen with it, he said.

“In the case of Alan Joyce, the rise in the share price increased his total remuneration from $10.1 million to $24.6 million,” he said.

Joyce took a 5% pay cut and executives received no bonuses when Qantas recorded a loss in 2014, and there had been no increase in the ceo’s base pay since 2011.