Alan Joyce has his last Qantas bonanza, reaping $3.8m in final payout

1 week ago 3

Former Qantas chief executive Alan Joyce has his final hurrah with the airline company he led into a storm of controversy, pocketing a further $3.8 million worth of shares.

When the board voted to cut Joyce’s pay in 2024 following a string of scandals and public relations disasters under his leadership, it scrapped all of Joyce’s long-term incentive plans except for the period of 2023-2025, which is vesting now, giving the ousted former leader a last pay bonanza.

Meanwhile, his successor Vanessa Hudson’s pay jumped 44 per cent to $6.3 million, according to the airline’s annual report filed with the ASX on Friday morning.

Former Qantas chief executive Alan Joyce speaking in Sydney in August.

The 2024 annual report laid out that for Joyce, “353,956 rights under the 2023-2025 [long-term incentive plan] continue to remain on foot and may vest and convert to shares at the end of the performance period, subject to achievement of the original performance conditions”.

The performance hurdles stated that half of the long-term incentives would be paid if Qantas shares were in the top quartile of ASX-listed companies at the end of the 2025 financial year, and the other half would be granted if Qantas was in the top quartile of total shareholder returns among its global aviation peers.

Having met those conditions, Joyce is now fully entitled to receive the 353,956 share rights, priced at $10.74 as of the June 30 deadline, equalling $3.8 million.

Joyce declined to comment. A spokesperson for Qantas confirmed the long-term incentive award.

Over the past year, Qantas’ share price has soared 72 per cent to $11.78 on robust demand for travel, moderating fuel prices and improved efficiency. It rose as high as $12.12 on August 28.

The latest payout for Joyce comes despite Qantas shareholders in 2023 having voted overwhelmingly against a $14.4 million pay packet, following the bruising series of scandals that occurred on his watch as chief executive officer. A number of those issues happened as Qantas, like other airlines, struggled with the pandemic lockdowns from 2020.

Customer flight credits, arising from paid-for but unused COVID-era travel, were amassed by Qantas, at one point totally $1.4 billion, even as the airline at times refused to divulge how much customer money it was holding. Under pressure, the airline extended the deadlines for the flight credits’ use, but not before pocketing a share of it.

The company was fined for so-called “ghost flights”, tickets sold for already cancelled journeys, which earned it a $100 million fine from the Australian Competition & Consumer Commission.

During the height of the pandemic in 2020, it illegally fired more than 1800 engineers, which became the subject of a lawsuit. Last month Qantas was ordered to pay a record $90 million penalty for illegally sacking those workers. The judgment followed an earlier order to pay $120 million in compensation for distress and economic losses of the same workers.

As public approval of Qantas cratered, a 2024 Qantas governance review report found that while “some operational failings were beyond our control” during the COVID period, “others resulted from us not achieving the right balance between the interests of our different stakeholders”.

“The board acknowledges this contributed to the group’s significant reputational and customer service issues.”

Joyce emerged from a one-year self-imposed silence last month, giving a speech that acknowledged and defended the “hard and painful decisions” made by Qantas management during the pandemic lockdowns.

“Qantas was the only major Australian airline not to go bankrupt during or after the pandemic,” he said. “That wasn’t luck. That was resilience.”

Current Qantas chief executive Vanessa Hudson’s pay jumped 44 per cent in the past financial year.

His successor Vanessa Hudson, who served as Joyce’s chief financial officer, has sought to move the company in a new direction since his departure. Since the start of her tenure, the airline has undertaken efforts to improve the experience of both customers and staff. She has also initiated staff bonuses, share purchase plans and a long-awaited fleet refreshment to modernise the aircraft Qantas uses.

Hudson’s total pay package climbed to $6.3 million in 2025, from $4.4 million in the previous financial year, the company said in its annual report. The executive sold 125,000 Qantas shares, equalling $1.3 million, in the course of the year “to meet an income tax liability arising from the vesting and release from restriction of Qantas shares” in 2024.

Given the disruption and reputational hit to the airline from the recent Qantas cyberattack, the board cut short-term bonuses for her and the executive team by 15 percentage points, which took $250,000 off Hudson’s pay.

In June, Qantas disclosed the theft of 5.7 million customer records through a third-party vendor, raising concerns for the security of data held by the airline on its customers.

“The business had an outstanding year, delivering not just on financial metrics but importantly delivering for customers and our people. Vanessa and her leadership team have done a fantastic job,” Qantas chairman John Mullen said in the annual report.

“Despite the strong performance, the board decided to reduce annual bonuses by 15 percentage points as a result of the impact the cyber incident had on our customers. This reflects their shared accountability while acknowledging the ongoing efforts to support customers and put in place additional protections for customers,” he said.

Hudson’s base pay was $1.48 million, with short-term bonuses of $2.04 million and a long-term incentive plan worth $2.4 million if and when its performance hurdles are met. She also had other benefits worth $374,000 in 2025.

The second-highest-paid executive was Jetstar chief executive Stephanie Tully with a package of $3.08 million, followed by Qantas group chief financial officer Rob Marcolina at $3.02 million.

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