Can Alan Joyce Fly Qantas Into Aviation History?

[Max Samuels]

That is the headline screaming out from the front cover of the AFR Magazine today.... another fantastic bit of text calls him the "Wizard of Oz".... "Australia's most high profile CEO".... lol.
Obviously anyone with half a brain knows that this kind of "story" is what they call a "puff piece", probably paid for, and is basically advertorial. But I thought that for a forum such as this, these over-the-top accolades are just ripe for having a bit of fun with....

But I do have a serious question. As a humble worker bee I do not really understand the relationship between CEOs and profit and company size and pay. If AJ is Australia's highest paid CEO, as the mag claims, why it that so? Qantas is not the most profitable company by any measure.

Anyway Happy Friday!!!!!!!!!!!

 

[muppet]

“Highest paid CEO” claim includes short and long term options etc. many of which were issued when the price of QF shares was in the toilet.
His actual cash and short term incentives are fairly reasonable for the size of the company and profit.

 

[Max Samuels]

“Highest paid CEO” claim includes short and long term options etc. many of which were issued when the price of QF shares was in the toilet.
His actual cash and short term incentives are fairly reasonable for the size of the company and profit.

Ah ok... so it is an "on paper" kind of thing? If he were to "cash in" everything today probs wouldn't give him the amount everyone quotes?

 

[muppet]

Ah ok... so it is an "on paper" kind of thing? If he were to "cash in" everything today probs wouldn't give him the amount everyone quotes?

No it would be worth that amount reported.

It’s just that the options may have “vested” now that performance hurdles are met but he actually earned them in 2015 or 2016 when the share price was very low. That means he has instantly earned a huge profit on those shares.

So he may have been given $3m worth of shares as a long term bonus in 2016 that now they have vested are worth $14m (fake numbers just example).

 

[jb747]

The problem is that, with any shareholding at all, it makes decisions that may help the share price in the shorter term, without regard to the long term, more likely. Share buybacks also. They may help the share price in the short term, but do nothing for the company's future.

Beyond that...he can't fly.