Qantas AGM LIVE updates: Airline bracing for a strike on pay report; Hudson, Goyder to speak

Save articles for later

Add articles to your saved list and come back to them any time.

  • 1 of 1

Payday up in the air for senior executives

There are five items of business to be discussed at this AGM, with shareholders to vote on a range of issues including the election of newly minted boss Vanessa Hudson to the board, and whether she should be eligible for Qantas’ long-term bonuses.

The most controversial item is bound to be the group’s remuneration report, which won’t be discussed until item number four.

Qantas’ remuneration report has been rejected by all proxy advisors – which inform the votes of institutional shareholders – and a number of key investors including superannuation giant HESTA and Norges Bank.

In it, the group revealed that former airline boss Alan Joyce, who led the business for 15 years, would be granted a final payout of $21.4 million.

Vanessa Hudson, Richard Goyder, Alan Joyce: The airline is bracing for a strike against its remuneration report.Credit: Rhett Wyman

This number may increase by $2.7 million if the board decides to issue Joyce his short term incentive payment. This bonus has been withheld for all executives while the board awaits more information about the Australian Competition and Consumer Commission’s Federal Court case against it.

Directors on notice

Qantas shareholders will also be asked to vote on whether directors Todd Sampson and Belinda Hutchinson should remain on the board for another term.

Brand and advertising expert Todd Sampson has faced a lot of pressure to step down in recent weeks, with multiple proxy advisors recommending investors vote against his re-election in light of Qantas’ reputational decline since flying resumed after COVID-19.k

Other investors and advisors, including Institutional Shareholder Services, have pointed out that Qantas has faced significant changes in the past couple of months, with the bulk of the board set to depart within the next few years and Sampson should retain his role in the interests of stability.

Todd Sampson, Canadian-born Australian television personality and CEO of the advertising agency Leo Burnett Australia, is up for re-election on the board of Qantas.Credit: Chris Hopkins

Last month, Qantas announced Goyder would step down somewhere within the next 12 months, with no firm date set yet.

Meanwhile, Hudson has offered herself up for re-election today, as has former American Airlines chief Doug Parker and former public servant Heather Smith, as well as Sampson and Hutchinson.

Here’s a refresher on the board overhaul that was announced on October 11.

Good morning

Welcome to our live coverage of Qantas’ annual general meeting, which is set to kick off at 11am.

From the damning allegations raised by the consumer watchdog in the Federal Court to scathing criticism over perceived undue government influence, it’s been a tumultuous year for Australia’s biggest airline business.

Today’s AGM is sure to be full of robust exchanges between the group’s board of directors – helmed by chair Richard Goyder, who is set to retire next year in light of the scandals – and its many shareholders.

Our aviation reporter Amelia McGuire is on the ground in Melbourne and will blog the most important parts of the day.

We hope you enjoy reading.

  • 1 of 1

Most Viewed in Business

Source: Read Full Article