Because of the financial losses suffered by Australian flag carrier Qantas, the officials of the company, led by Chief Executive Alan Joyce, suffered hefty pay cuts during the last financial year.
Joyce's salary was cut by 5 per cent and he received no bonuses, reducing to $2 million or 40 per cent his total compensation package. But the bigger loss was by Qantas which reported $2.8 billion deficit for year 2013/14.
The downsizing was felt across the Flying Roo which started to axe 5,000 jobs and froze the pay of senior officials, resulting in Joyce's compensation package lower by $1.33 million compared to the previous financial year when he earned $3.33 million. That amount included a cash bonus and awards deferred from prior years.
It was part of Qantas's goal to save $2 billion over three years. So far, the air carrier has only shed about 2,500 jobs. In the coming months, it would sit down with unions that represent the long-haul pilots and aircraft engineers to discuss a proposed new enterprise bargaining agreement.
The air carrier had begun six weeks ago meeting with the Transport Workers Union to tackle the agreement for 2,000 ground staff whose three-year agreement ended on July 1.
The pay of Simon Hickey, head of the losing Qantas International, dipped to $948,000 from $1.5 million, while that of Jetstar boss Jayne Hridlick went down by $323,000 from $1.04 million. The cut on the pay of Domestic head Lyell Strambi was by $353,000 to $1.08 million.
Overall, Qantas saved $6.93 million by cutting the salaries and perks of its executives.
Despite the weak annual report released on Thursday, Qantas shareprice increased by almost 21 per cent, following the declaration by Joyce that the airline's worst days are over and he predicted a return to pre-tax profitability within the next few months.
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