Qantas CEO’s Controversial $10 Million Bonus Sparks Outrage. The Qantas Staff Union is expressing its anger after news broke that CEO Alan Joyce received a $10 million bonus for the airline’s success in meeting its COVID-19 goals. Additionally, Chief Financial Officer Vanessa Hudson received a substantial bonus as well. Check latest news about Qatar Airways.
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Surprise Amidst Record Profit
This development comes as the Australian flag carrier reported record profits last year. Qantas employees were taken aback by the hefty bonuses awarded to executives following a challenging period for the airline.
Pandemic Rewards
Under its long-term incentive and COVID recovery plans, Joyce received over 1.74 million shares valued at more than $10 million. Hudson received approximately $2 million worth of shares. These incentives were deferred over the past three years, during which Qantas laid off thousands of employees and reduced wages for those who remained.
Backlash and Legal Proceedings
In addition to the bonus controversy, the Australian Competition and Consumer Commission (ACCC) initiated legal proceedings against Qantas for allegedly selling tickets on flights that were already canceled last year. The timing of the bonus announcement raised suspicions, as it came shortly after the ACCC’s actions.
Qantas Responds
In response to the ACCC allegations, Qantas announced the removal of the expiration date on COVID travel credits worth nearly $600 million, originally set to expire in December. Passengers can also request a cash refund if they choose not to use the credits. Travelers with booked itineraries on Jetstar, a Qantas subsidiary, can use their credits indefinitely.
Unions Speak Out
Qantas faced further backlash for opposing Qatar Airways’ request to increase the number of flights to Australia. The government rejected Qatar’s request, potentially costing the economy over half a billion dollars annually.
Michael Kaine, CEO of the Transport Worker’s Union, criticized the airline for rewarding Joyce amid various legal challenges and a class action from dissatisfied customers. Emeline Gaske, Assistant National Secretary of the Australian Services Union, condemned Qantas for cost-cutting measures during the pandemic, including mass layoffs.
Qantas declined to comment on the matter. Joyce is set to step down as CEO in November, with Hudson likely to succeed him.