One of Australia's highest paid CEOs, Alan Joyce of Qantas, did not get paid for four months from April to July, as part of the airline's efforts to save money amidst the Covid-19 pandemic, Qantas has revealed in a statement.
He also did not receive an annual bonus.
Also offered not to receive 343,500 shares associated with his long-term incentive
Joyce's total pay was reported to have fallen by 83 per cent to A$1.7 million (S$1.6 million) for the financial year ending on June 30, 2020, from A$9.9 million (S$9.8 million) a year earlier.
Part of the fall was also due to Qantas' board agreeing to Joyce offering not to receive the 343,500 shares associated with his long-term incentive from 2017.
Qantas added that a decision on whether these shares will ultimately vest or lapse has been deferred until at least August 2021.
Chairman and board also took no pay for at least three months
In addition, the airline's chairman, Richard Goyder, also received no pay from April to July, while the rest of Qantas' board and executive management took no pay for three months, from April to June.
Annual bonuses that would have been paid based on non-financial performance targets were also forgone.
Goyder added that "important leadership" had been shown in doing so.
"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.”
Both Joyce and Goyder have since returned to 65 per cent of his base pay, beginning on August.
The rest of the board returned to 85 per cent of their base pay beginning in July.
According to Qantas' 2020 annual report, Joyce and the rest of the board will return to their full base pay on Nov. 1, 2020.
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