INTERNATIONAL BUSINESS NEWS
August 20, 2012 12:00:00 AM
  Follow @ Twitter

The embattled chief of Qantas Airways Alan Joyce said Monday he would forgo any bonus or pay rise, joining a growing list of high-profile top executives at Australian companies who are doing the same.

Qantas is struggling with soaring fuel costs and worsening global conditions and has indicated it will this week post its first annual loss since privatisation in 1995.

In a statement to the stockmarket in June, the airline said it expected underlying profit before tax -- its preferred indicator -- to be Aus$50-100 million (US$52-104 million) in the year to June 30.

This compares with Aus$552 million in the previous year.

Joyce said the board had accepted his decision to forgo any short-term or long-term incentive payments that would have been awarded for the 2012 financial year, and to turn down any salary increase.

"It's absolutely appropriate that when company returns go down, executive pay should go down as well," he said in an interview with the Australian Financial Review.

"It has been an extremely tough year for Qantas shareholders and what we want to show is that my pay has to have a huge correlation with the profitability of the company."

As well as fuel prices, a soaring Australian dollar and a bitter battle with unions over wages and conditions that saw Joyce ground the entire fleet for 48 hours in October have also cost the airline dearly.

According to the newspaper, Joyce's pay will fall to Aus$2.3 million for the 2012 financial year, compared to the Aus$5 million he took home the previous year when bonuses and other incentive payments bumped up his salary.

He is following the example of several other high-profile chief executives in bowing to investor pressure on executive remuneration.

The heads of global miners giants BHP Billiton and Rio Tinto, Marius Kloppers and Tom Albanese respectively, have also turned down bonuses.

Elsewhere, banking giants ANZ and Commonwealth have both frozen top executives' salaries, the newspaper said.

AFP

Wiggle


PREVIOUS STORY
Air show spotlights Brazil's booming aviation sector
NEXT STORY
Apple is most valuable company ever

Bookmark and Share
   




FIJI NEWS
Ba Hospital construction to start AugustThe construction of the new Ba Hospital is expected to start next month.
BUSINESS
Fiji Airways records $17.2m profitFiji Airways Group has announced an operating profit of $17.2m for the first half-year, from January 1 to June 30.
TECHNOLOGY
Only call details given to police in 670 cases: VFVodafone Fiji says it provided call details in 670 cases to police on the production of a search warrant or court order, but does not listen to or record calls, and could not provide such information.
HEALTH/FITNESS
Clean-up day to curb dengue outbreakFiji's Ministry of Health has declared a clean-up day next Thursday for residents in the central division as it ups the tempo against a dengue fever outbreak currently experienced in the country.
SPORTS
Jones confirmed for Fiji InternationalAustralian golfer Brendan Jones is the latest player to confirm his place at the inaugural Fiji International which will be played from 14-17 August at the Natadola Golf Course in Sigatoka.
LIFESTYLE/FASHION
Fijian model joins Trumpís agencyA yearís wait finally ended for Fijian teen model Phillipa Steele yesterday as she flew out of the country to join one of the most prestigious modeling agencies in the world Ė Trump Model Management
NEWS SPORTS INFOTAINMENT SERVICES MOBILE EXTRA HOT TOPICS