Alan Joyce to leave Qantas immediately
Qantas CEO Alan Joyce is set to resign from his position earlier than planned, ending his 15-year tenure. This decision comes amidst a challenging period for the airline, marked by serious accusations of government interference, unfair business practices, and the alleged sale of tickets for flights that were no longer operational.
Vanessa Hudson, the incoming CEO, will assume control of the struggling business on Wednesday. This comes after Joyce informed the airline's board that he would expedite his departure to aid the company in advancing.
Qantas CEO, Alan Joyce, expressed that given the current situation, the optimal course of action is for him to accelerate his retirement and pass the torch to Vanessa and the newly appointed management team. He has confidence that they will perform exceptionally well in their roles.
"Over the past few weeks, the attention placed on Qantas and past occurrences has made it evident to me that the company must prioritize advancing its revitalization," expressed Joyce.
Given the circumstances at hand, I believe it's most prudent for me to expedite my retirement and relinquish my responsibilities to Vanessa and the newly assembled management team at present. I am confident that they will excel in their roles and manage the affairs admirably.
The selection of a new chief financial officer to replace Hudson will be accelerated, and Rob Marcolina will assume the position on Wednesday. The shareholders will officially cast their votes on November 3 to confirm Hudson's appointment as managing director.
Richard Goyder, the chairman of Qantas, stood up for Joyce's 15-year leadership of the airline conglomerate. The firm, consisting of Qantas and Jetstar, holds a commanding 60% market share. However, Goyder admitted that public trust has significantly deteriorated due to the impact of the COVID-19 pandemic.
Alan has consistently prioritized the well-being of Qantas, and his actions today highlight that commitment.
The board would like to express their genuine gratitude to him for his guidance during difficult situations and for his forward-thinking approach towards opportunities such as extended long-distance journeys.
This change occurs during a difficult period for Qantas and its staff. We have a crucial task of regaining the trust of the community and demonstrating the type of organization we truly are. This is the central objective for the board, and under Vanessa's guidance, the management team will work towards achieving it.
The extravagant departure comes after a chaotic month for Qantas. A fortnight ago, the airline achieved an unprecedented profit of $2.47 billion for the 2023 fiscal year. Shortly thereafter, Joyce endured a rigorous questioning from a Senate inquiry, and to make matters worse, the competition watchdog initiated legal proceedings in the Federal Court accusing Qantas of selling tickets for flights that were already canceled.
Tony Sheldon, a Labor Senator who has been a strong opponent of Joyce and a former supporter of the Transport Workers Union, expressed his approval of Joyce's retirement. However, Sheldon also believes that Goyder should resign from his position.
Sheldon expressed that the impact left by Alan Joyce can be seen in the division of employees across 38 different organizations, along with a brand reputation that is now closely associated with inadequate wages, uncertainty in employment, unlawful terminations, and unfair treatment towards consumers.
The board has supported Joyce's actions throughout the entire process and shares an equal responsibility for the appalling condition of the company.
"If Qantas is truly committed to starting fresh, they should consider rehiring the 1700 workers who were unlawfully dismissed and endorse the closure of Joyce's labor-hire exemption."
Sheldon also expressed that Joyce's bonus should be eliminated. It is anticipated that Joyce will receive a sum of $24 million in November, considering both his extended and immediate bonuses as well as his base salary.
On Friday, the airline revealed to the stock market that Joyce had received 1.7 million Qantas shares as compensation for achieving important financial goals. These shares hold a value of over $10 million. This reward is a portion of Joyce's bonuses from the years 2020, 2021, and 2022, as well as a distinct incentive program introduced by the airline during the global pandemic.
Joyce is also entitled to receive a temporary bonus of up to $4.3 million for the current fiscal year. This amount is separate from his long-term bonus, which consists of shares worth approximately $18 million that have already been given to him, as well as his yet-to-be-disclosed base salary. The complete sum of his compensation will remain undisclosed until the company releases its annual report later this month, which will provide a comprehensive breakdown of executive remuneration.
Since Joyce became CEO in 2008, shareholders have consistently supported his compensation and have never voted against it. However, numerous proxy advisors, politicians, and unions have made repeated calls over the years for his remuneration to be questioned. In response to pressure from Labor MPs and institutional advisors, the board is now being urged to contemplate the possibility of withholding his short-term bonus.
Tony Lucas, President of the Australian and International Pilots Association, expressed optimism in Hudson's ability to "reconstruct" the airline. This association specifically represents pilots working for Qantas and Jetstar.
“There is a lot of work that needs to be accomplished. Nevertheless, we have faith that Ms. Hudson acknowledges the influence of treating and appreciating all Qantas employees and how that can have a substantial impact on the revival of the airline.”
"The essence of Australia may feel diminished, but it is far from vanquished, and by joining forces, I have complete faith that Qantas can reclaim its former glory."
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