The Qantas Group has today released its 2021 Annual Report, covering one of the toughest years in its long history.
The report provides detailed disclosures on the Group’s performance against a range of financial and non-financial measures, including safety, sustainability and customer satisfaction.
As announced at its full year results in August, the Group posted a statutory loss before tax of $2.35 billion for FY21 due to the impact of the COVID crisis. Qantas and Jetstar’s international flying was effectively grounded for the entire year and there were more than 330 days of some level of domestic travel restrictions.
Key targets for operational safety, workplace safety and customer satisfaction were all achieved.
The report also provided disclosures on executive remuneration, which followed a similar pattern to the prior year compared with pre-COVID. In summary:
- Total executive take home pay was down almost 70 per cent compared with pre-COVID (i.e. 2019 levels) and similar to FY20 levels. As CEO, Alan Joyce’s pay was down more than 80 per cent compared with pre-COVID.
- The drop was mostly due to cancellation of annual bonuses for a second year in a row plus four months of nil and reduced base pay. This followed three months of no pay in FY20.
- Group CEO Alan Joyce again chose to defer his long term incentive (which was awarded by shareholders in 2018) of 325,500 shares. Other senior executives received half of their long term incentive, based on the performance of the Qantas share price compared with global airline peers.
- Base pay for executives will remain frozen in FY22 and annual incentives are again unlikely to be paid for the third year in a row.
In addition, the size of the Qantas Board will reduce from 10 to eight for the foreseeable future, following the planned retirement of two long-serving directors (Barbara Ward and Paul Rayner) at the AGM in November 2021. As well as reduced fees in FY20 and FY21, several Directors have elected to receive a portion of their fees in Qantas shares rather than cash.
In releasing the Annual Report, Qantas Chairman Richard Goyder said: “This past year has been the most challenging in Qantas’ history. The financial impact of COVID is clear and it will take time for us to recover, but what will endure is how we responded.
“Our people have done an incredible job in the face of a lot of uncertainty to keep delivering an essential service.
“They’ve brought Australians home from overseas on behalf of the Federal Government, operated freight flights to keep exports and medical aid moving, helped the resources sector power on, and maintained crucial links between cities and towns even in the depths of lockdown.
“The focus on safety has remained absolutely core, including managing the additional complexity of an evolving health crisis.
“I’d like to recognise the considerable efforts of the senior executive team led by Alan Joyce, which is steering the company through unchartered territory and onto the path of recovery.
“To be candid, it wasn’t a forgone conclusion that Qantas would emerge from this pandemic in the shape it has. You only need to look at many airlines around the world to see that things could have gone very differently.
“A lot of difficult decisions were made that have proven to be the right ones, especially given the lockdowns and border closures that are still having a massive impact.
“With the success of the vaccine rollout and a clear national plan for reopening, we’re looking forward to helping Australians reunite in the months ahead and getting our people back to work.”