Alan Joyce, Chief executive of Qantas has announced that he will be giving up his salary for the rest of the financial year.
“In the past fortnight we’ve seen a sharp drop in bookings on our international network as the global coronavirus spread continues”, Qantas Group CEO Alan Joyce, said.
“When revenue falls you need to cut costs, and reducing the amount of flying we do is the best way for us to do that.
“Less flying means less work for our people, but we know coronavirus will pass and we want to avoid job losses wherever possible. We’re asking our people to use their paid leave and, if they can, consider taking some unpaid leave given we’re flying a lot less.
“Annual management bonuses have been set to zero and the Group Executive team will take a significant pay cut for the rest of this financial year”.
Joyce’s total remuneration last year was A$23.8m although his base salary was A$2.17m. His salary sacrifice is one of a range of sweeping measures including pay being slashed for other executives and 23 per cent capacity cuts across Qantas and Jetstar for the next six months.
“The Qantas Group is a strong business in a challenging environment. We have a robust balance sheet, low debt levels and most of our profit comes from the domestic market. We’re in a good position to ride this out, but we need to take steps to maintain this strength.” he added.