Qantas CEO pay $23.9 million

[juddles]

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If he hasn’t set the company up for the future, won’t that share price just evaporate when the market eventually realises. ......

jb, you raise some important concerns with your inside knowledge, but at the end of the day it is up to the owners of a company to know the risks. If they are happy, then what else matters? It is their company.

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AJ made an agreement with the board. AJ delivered. Gets paid accordingly. Simple as that. If anything - it's the board who should be questioned.
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Exactly.

The company is owned by shareholders. Those shareholders have a board. If they make mistakes, well, those shareholders suffer the outcome.

Staff happiness, etc are just another concept. I do not say I "agree" with that certainty, but it is how the capitalistic world works. I am sure that if Qantas was run by the government, with wholesome employee caring, and passenger considerations, then the staff would have been paid more and the pax would have been offered a far better service. But the airline would also have disappeared in a mountain of debt that taxpayers would now be silently paying off, and the staff would have been out of a job many years ago.

 

[jb747]

I didn’t say I was against AJ, or anyone else being paid that sort of money. But, I believe the metrics that it’s based upon should be real, and not available to be fiddled, as share pricing so obviously is.

Also staff happiness is discussed as if it is something optional, that can be dispensed with. But, staff that are valued (and this DOES NOT mean extra money) will work harder and longer, and that must translate into better company performance.

When I put my minuscule CEO hat on, it seems to me that any company in which staff and management hold each other in mutual contempt has some pretty serious issues.

 

[JohnK]

@juddles it's not about hating high income earners. That salary is obscene and so far out of touch with reality.

30 years ago a good CEO could earn 5x-10x what most would consider a decent salary of ~$50000.

Today an average CEO could earn 25x-500x what most would consider a decent salary of $100000.

What has changed in the past 30 years to make a CEO that much more important and worth exponentially more? And unfortunately it doesn't end with CEO only as generally senior executive salaries are obscene and out of touch with reality today.