COVID-19 has sent Qantas chief Alan Joyce’s salary into an 83 per cent tailspin for the FY 2020 year according to the airline’s annual report released today.
Mr Joyce’s salary plummeted from A$9.9 million in FY19 to A$1.7 million in FY20.
Part of the decline was attributed to Mr Joyce not taking up 343,500 shares associated with his long term incentive from 2017.
The Qantas chairman Richard Goyder and Mr Joyce continued their period of zero pay during July, which had started in April, before moving to 65 per cent of base salary/fees from August 1.
The rest of the board and executive management have received 85 per cent of their base pay/fees since July.
Overall total executive pay for FY20 dropped by 69 per cent compared with FY19.
Mr Goyder said: “The COVID crisis is having a devastating impact on aviation for obvious reasons. Qantas has the ability to get through this, but ongoing border closures mean we’re still not in recovery mode despite Australia’s overall success in handling the pandemic.
“When travel restrictions first hit, Alan and the management team acted quickly to put most of the business in hibernation and develop a recovery plan. Liquidity has been strengthened and difficult decisions are being made as part of carving out $15 billion in costs over the next three years. Sadly, this has a very real impact on thousands of our people,” Mr Goyder said.
“Management and the Board showed important leadership by taking no salary for several months and then a reduced salary for months after that. This is obviously not the same hardship as those stood down or facing redundancy, but it comes at a time when demands on management are greater than ever.”
Over 22,000 Qantas group staff are laid off on Job Keeper and 6000 have been made redundant.