New Qantas boss Alan Joyce to earn up to $4.7m

[NM]

from news.com.au:

INCOMING Qantas chief executive Alan Joyce could earn as much as $2.71 million in additional annual income from a cash and share-based incentive scheme, the company says.

This would top up his fixed remuneration of $2 million.

 

[Platy]

From Irish dwarf to $6 million dollar man (warning - rant included!)

Here we go again! Incoming QF CEO set to make a killing on salary and various bonuses, which make a mockery of the call for restraint in wages growth within the airline:

New Qantas boss Alan Joyce to earn up to $4.7m | Business Breaking News | News.com.au

How does this work - is it just the board, or do shareholders have to vote on such matters?

If the latter, persumably it's all part of the old boys club in terms of large institutional investors effectively controlling shareholder voting???

Here in Cairns the local unofficial word is that we may see the demise of the twice weekly QF product CNS-PER direct route from early next year as the Deathstar continues its bid for domination of the skies unabated and starts their own CNS-PER route. Get ready for the now routine of paid up QF passengers being unceremoniously dumped onto the no service Scarebus product and yet another step in the divestment of QF entirely from CNS. Watch out too, National Jet...

Incidentally, on their recent visit to CNS, my sources inform me that Joyce continued Dixon's predilection for ignoring coal face staff (despite claiming in his recent Australian interview that staff morale was going to be a key issue for his "leadership").

And what the heck are the State Gov of QLD doing using taxpayers' money to subsidise QF Group operations (OOL-CNS planned flights on Deathstar), especially when the Japanese market prefers full service product?

Nuts...:shock:

 

[NM]

Since these threads were on the media same topic. I have moved together into the Travel News forum.

 

[oz_mark]

Re: From Irish dwarf to $6 million dollar man (warning - rant included!)

How does this work - is it just the board, or do shareholders have to vote on such matters?

Someone may correct me but I believe it is up to the board that is supposed to be acting for the shareholders. The only way for shareholders to really vent is to remove some of the board.

On the positive side, there does seem to have been a bit of a movement against executive salaries in the latest round of AGMs. Perhaps because the institutions that own much of the stock have taken a beating themselves.

 

[oz_mark]

Re: From Irish dwarf to $6 million dollar man (warning - rant included!)

Here in Cairns the local unofficial word is that we may see the demise of the twice weekly QF product CNS-PER direct route from early next year as the Deathstar continues its bid for domination of the skies unabated and starts their own CNS-PER route. Get ready for the now routine of paid up QF passengers being unceremoniously dumped onto the no service Scarebus product and yet another step in the divestment of QF entirely from CNS. Watch out too, National Jet...

It's official now, although they are being moved onto other QF services...Latest Qantas News

The information below outlines procedures to assist Travel Agents facilitate both reservations and ticketing for passengers affected by the withdrawal of Qantas non-stop services effective 6 February 2009 between Perth and Cairns (and visa versa).

• Passengers booked on QF1030 PER-CNS (Fri & Sun) will be reaccommodated to QF652 PER-BNE and QF798 BNE-CNS.
• Passengers booked on QF1031 CNS-PER (Fri & Sun) will be reaccommodated to QF709 CNS-BNE and QF597 BNE-PER.

 

[Platy]

Re: From Irish dwarf to $6 million dollar man (warning - rant included!)

It's official now, although they are being moved onto other QF services...Latest Qantas News

Thanks for the confirmation. Watch out next for the CNS-AYQ and CNS-DRW flights disappearing from the Qantaslink service...having already lost the CNS-DRW Qantas 2-class service some months ago and the QF CNS_DRW-SIN before that!

 

[simongr]

The CEO remuneration in all likelihood would be set by the remuneration committee which is constituted from independent directors elected by the shareholders.

The policy on setting exec pay is completely transparent and available from the QF website. The underlying principle of it are:

2006/07 Executive Remuneration Philosphy and Objectives
Qantas needs to be able to attract, retain and appropriately reward a
capable Executive team to meet the unique challenges it faces as a major
international airline based in Australia.
Qantas’ philosophy for the remuneration of its Executives is to align their
earnings with their duties and responsibilities and to pay for performance.
These objectives are achieved via a reward program that involves a
combination of:
Fixed Annual Remuneration (FAR);
the Performance Plan, comprising:
the Performance Cash Plan (PCP) – a short-term cash incentive;
the Performance Equity Plan – comprising a medium-term incentive,
the Performance Share Plan (PSP) and a long-term incentive, the
Performance Rights Plan (PRP); and
the Retention Plan (RP), involving awards of deferred shares or cash
to a small number of selected Executives whose retention is
considered vital to the Qantas Group; and
concessionary travel entitlements, targeted key milestone bonus
arrangements and other discretionary benefi ts considered appropriate
from time to time.
The Remuneration Committee (a committee of the Board) has the role of
reviewing and making recommendations on the Qantas Executive
Remuneration Policy.
•
•
i.
ii.
iii.
•
In doing so, the Remuneration Committee seeks advice from a range of
independent external specialists. The guiding principles applied by the
Remuneration Committee in managing remuneration for Executives are
that:
appropriate market benchmarks are reviewed in setting all elements
of reward;
differentiation to recognise performance is involved in all pay increases,
both fi xed and ‘at risk’;
‘at risk’ pay decisions are based on a formal performance management
system; and
longer-term rewards align the interests of Executives with shareholders
and support a culture of employee share ownership.
Overall, the mix of the remuneration program refl ects market practice but
is tailored to the specifi c circumstances of Qantas.
The importance of a stable and talented senior Executive team has always
been a priority for Qantas. This has been highlighted over recent years
with many major issues needing to be addressed with the aviation industry
and within Qantas, including succession within the Executive ranks. To
ensure the continuity of a successful team, Qantas has made awards under
the Retention Plan.

 

[Platy]

The CEO remuneration in all likelihood would be set by the remuneration committee which is constituted from independent directors elected by the shareholders...The policy...principle of it are.

Many thanks for the info, Simongr! Very interesting!

 

[oz_mark]

As ridiculous as the figure is, is it not less than what GD was earning?

 

[straitman]

Maybe another perspective on this.

Delta awarding CEO $13.6M for NWA deal

Looking from this angle maybe Alan Joyce needs a pay rise :!: :shock:

 

[comint]

I saw an interesting interview on TV recently with the JAL CEO. He is paid a figure under US$100,000 (less than some of his pilots) and has declined all ancillary benefits.

There are talented people out there, willing to get the job done for a reasonable salary, so we do need to question the outrageous pay deals that some Australian boards are approving.

On a national interest level, we also have to question whether we get social value from providing on the job entrepreneurial training to people who will simply flee the antipodes in a few years (taking their skills with them) for higher global pays elsewhere. Instead of re-investing those skills in new business activities here.

 

[simongr]

Interesting comment. Do you have an issue with foreign nationals moving here and bringing skills learned overseas to this country?

 

[crazydave98]

On a national interest level, we also have to question whether we get social value from providing on the job entrepreneurial training to people who will simply flee the antipodes in a few years (taking their skills with them) for higher global pays elsewhere. Instead of re-investing those skills in new business activities here.

I recall seeing a news clipping that Alan Joyce has taken up Australian citizenship and he already knocked back the opportunity to take over Aer Lingus when Willie Walsh moved to BA.

 

[Platy]

I recall seeing a news clipping that Alan Joyce has taken up Australian citizenship and he already knocked back the opportunity to take over Aer Lingus when Willie Walsh moved to BA.

Indeed. One would hope some Execs have a sense of loyalty and purpose which goes beyond the financial!

Correct me if I am wrong, crazydave98, but didn't Brett Godfrey weather some pretty challenging times as DJ experienced various ownership changes? One assumes some sort of loyalty in such circumstances.

I'm afraid I still can't get the overpowering image of Geoff Dixon and Margaret Jackson grinning ear to ear at the press conference announcing that private equity deal out of my brain. It was some days later we learned just how rich that was going to make senior Qf execs!!! Then the absurdity of Dixon claiming he was going to give his deal bonus to charity only for it later to be revealed there were other bonuses in the $10's millions. I mean how can you spend $130 million in one retirement as one human being?????

 

[NM]

I recall seeing a news clipping that Alan Joyce has taken up Australian citizenship and he already knocked back the opportunity to take over Aer Lingus when Willie Walsh moved to BA.

Then we need to credit Mr Joyce with at least one good decision

 

[straitman]

Then we need to credit Mr Joyce with at least one god decision

And which god decision is that :?:

 

[NM]

And which god decision is that :?:

ok, so my typing fails again . but those slips can be the most amusing!

 

[straitman]

ok, so my typing fails again . but those slips can be the most amusing!

Absolutely

 

[JohnK]

Re: From Irish dwarf to $6 million dollar man (warning - rant included!)

Here we go again! Incoming QF CEO set to make a killing on salary and various bonuses, which make a mockery of the call for restraint in wages growth within the airline

Executives are exempt from restraint in wages growth.

In my opinion most executives are exempt from most restraints the majority of working class people have to go through in life.

 

[Platy]

Re: From Irish dwarf to $6 million dollar man (warning - rant included!)

Executives are exempt from restraint in wages growth. .

Yes, indeed, you are right JohnK!

Just seems unfortunate to offer the dwarf a way above international standards salary package when QF are supposed to under an exec weage freeze.

I guess dwarf will do very nicely in time since he is moving in when shares are at a very low point in the cycle...