Qantas Airways CEO Alan Joyce is facing fierce criticism for receiving a pay rise of more than $250,000, despite Qantas being hampered by several flight cancellations over the summer.
According to the company’s annual report, Joyce earned a total of $5,575,000 in the fiscal year ending June 30. That equates to a $287,000 pay raise over his earnings last year. The CEO also received a 21% increase in his base salary, as well as additional shares in the airline.
While it is common practice for companies to give their employees, including chief executives, a pay raise, some observers question whether this was appropriate in Joyce’s case.
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Senator and Australian Labor Party member Tony Sheldon criticized Joyce’s pay rise given Qantas has been struggling with flight cancellations all summer. These major disruptions have severely impacted the airline’s passengers for months.
In an interview with the Sydney Morning Herald, Sheldon called the Qantas CEO’s pay hike an “offensive”.
Problem at Qantas
Sheldon, a former Transport Workers Union of Australia official, said Qantas had already had several flight cancellations in recent months. Just recently, 4,000 passengers from Qantas subsidiary Jetstar found themselves stranded after their flights were suddenly cancelled.
“It’s shameful that while thousands of people are stuck in Bali and everywhere else, he’s giving himself a huge salary,” Sheldon said. said.
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The senator also pointed to Qantas’ controversial decision to lay off thousands of staff in the early months of the Covid pandemic.
Despite these criticisms, Qantas is sticking to its decision to raise its CEO’s pay. In a statement, the airline said it had given Joyce a raise after she voluntarily took reduced or no pay throughout the pandemic.
Qantas Chairman Richard Goyder once described Joyce as “Australia’s best CEO”.
