The skies aren't so friendly - Qantas, trust, and executive pay

At the heart of every global airline is a promise of trust, a bond between the service and its passengers.

As Australia’s once iconic flag carrier, Qantas has long embodied this trust, navigating skies from Sydney to Santiago.

Yet recent decisions surrounding the airline's executive compensation amidst controversy suggest turbulent times ahead, not just in the boardroom but in the court of public opinion.

Promising a payout of a staggering $21.4 million to Qanta’s former chief Grim Reaper Alan Joyce, Qantas seemingly soars in a direction that might befuddle many of its loyal customers.

And while executive pay is often insulated from broader business challenges, this payout comes at a time when the airline stands accused of malpractice and scamming — allegedly selling tickets on flights that were destined never to leave the tarmac.

Decisions made at lofty board meetings, particularly those related to executive pay, often carry repercussions far beyond the walls of corporate offices.

Qantas's choice to delay short-term bonuses, with a 20% cut reflecting customer dissatisfaction, offers a minor nod to the brewing storm of discontent. But is it enough?

It’s worth noting while a portion of Joyce’s bonuses can be "clawed back" in cases of serious misconduct, there’s a more pressing concern. The real turbulence lies in the reported illegal dismissal of 1,700 workers in 2020.

The optics of such significant executive payouts juxtaposed against workforce cuts is a challenging narrative for any company to navigate.

Even if Richard Goyder, Qantas' chairman, describes these dismissals as “commercially sound,” they're a grim reminder of the tightrope businesses walk between profitability and public sentiment.

Goyder’s comments reflect the heartless and callousness of Qantas’s executive - they’re secure let the workers be damned is their attitude.

The Transport Workers Union's claims further darken the clouds, suggesting governance risks and potential mismanagement at the top. Trust, once fractured, can be a herculean task to rebuild.

With Qantas acknowledging a record profit, yet simultaneously wrestling with an "acute loss of trust," it underscores that financial health isn't always synonymous with brand health.

Jacqueline Hey’s confirmation that Vanessa Hudson, the incoming CEO, will draw a smaller paycheck is perhaps a sign of the times — a subtle acknowledgment of the need for change and realignment.

Still, major superannuation investors' concerns about Joyce's bonus underscore a broader industry apprehension. Especially when allegations arise that the airline sold tickets for planned-to-be-cancelled flights.

The sale of $17 million in Qantas shares by Joyce, with the board's blessing, during an ongoing ACCC investigation, further complicates matters.

Vas Kolesnikoff's remarks hint at a broader institutional sentiment, with eyes keenly observing board decisions, signaling potential shifts in investor trust.

As Qantas maneuvers through these corporate and public challenges, it offers a lesson for global businesses - balancing profitability with responsibility, executive rewards with public perception, and navigating governance with genuine care are not just corporate responsibilities; they're the very essence of trust that passengers, employees, and investors place in a brand.

And Qantas has forfeited all of that.

As the skies ahead look uncertain, Qantas's true test will be its ability to restore and maintain that trust.