The $25 mil­lion man

Joyce to be re­warded for Qan­tas’s stel­lar run

Weekend Gold Coast Bulletin - - BUSINESS -

QAN­TAS chief Alan Joyce is Aus­tralia’s $25 mil­lion man af­ter be­ing richly re­warded for pi­lot­ing the air­line’s stun­ning turn­around.

Qan­tas chair­man, Leigh Clif­ford, has in­sisted the mam­moth pay cheque for the past year – up from $12.9 mil­lion the pre­vi­ous year – has been well earned.

Mr Joyce’s eye-wa­ter­ing salary, con­firmed in Qan­tas’s an­nual re­port yes­ter­day, hit the strato­sphere this year thanks to the com­pany’s me­te­oric rise in for­tunes just three years af­ter it posted a record $2.84 bil­lion loss.

Back then, Qan­tas looked like it was go­ing to need a gov­ern­ment guar­an­tee on its debt to re­tain its credit rat­ing.

But in years since, the group’s $2 bil­lion cost-cut­ting plan has helped de­liver a rise of more than 350 per cent in its share price, ef­fec­tively go­ing from chicken feed to caviar, with Mr Joyce chief among the ben­e­fi­cia­ries.

Some $14.5 mil­lion of his pay this year has come from the vest­ing of shares awarded un­der an in­cen­tive plan in­tro­duced when the air­line was at its low­est ebb.

That sum dwarfs his base salary of $2.1 mil­lion, which was un­changed from a year ago, with the re­main­der made up from short- and long-term bonuses.

Mr Clif­ford told share­hold­ers yes­ter­day the board had been vin­di­cated in link­ing se­nior man­age­ment’s per­for­mance tar­gets to the bonus scheme be­cause “the re­sults are clear”.

“They re­flect the com­pany’s ex­cep­tional per­for­mance, in­clud­ing our top rank­ing for to­tal share­holder re­turn among global air­line peers and every com­pany on the ASX 100.”

In the past three fi­nan­cial years, Qan­tas has posted pre­tax un­der­ly­ing profits – tal­lies that strip out one-off items – of $975 mil­lion, $1.5 bil­lion and $1.4 bil­lion.

Qan­tas shares closed down 1.2 per cent yes­ter­day at $5.82.

Pic­ture: JOHN FEDER/THE AUS­TRALIAN

Qan­tas CEO Alan Joyce has rein­vig­o­rated the air­line. PAUL GILDER

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