Qantas Lowers CEO Bonuses Amid Data Breach

By Himanshi Akhand and Rishav Chatterjee

(Reuters) – Australia’s Qantas Airways reported on Friday that it has reduced bonuses for its CEO and her team following a hacking incident that compromised the personal data of millions of customers.

Qantas CEO Vanessa Hudson will earn A$6.3 million ($4.09 million) for the year ending June 30, which includes a short-term bonus of A$2.04 million. This bonus was cut by A$250,000 as part of the consequences of the breach, according to its annual report.

This total compensation is significantly lower than the A$23.9 million received by former CEO Alan Joyce during his peak tenure in 2018.

The data breach, which was revealed in July, affected a Qantas call center database that contained six million names, email addresses, phone numbers, birth dates, and frequent flyer information. The incident has further weakened public trust in Australia’s largest airline, which is still trying to recover its image after decisions made during the pandemic severely impacted its reputation and ranking.

Qantas stated, “While we recognize that the investigations into this incident may not be finalized for some time, it is important for both our executives and shareholders that the remuneration consequences be dealt with this year.”

This decision comes despite Qantas achieving its second-highest annual profit on record and witnessing a 33% increase in its share price since the beginning of the year. Qantas shares ended the day 0.6% higher on Friday.

Market analyst Tim Waterer from KCM Trade noted, “The company’s strong profit and healthy share price have given the board some leeway with investors regarding remuneration.”

Investor scrutiny concerning executive pay has intensified recently. In August 2024, Qantas significantly decreased Joyce’s exit payout by A$9.3 million after an external review held him responsible for alienating travelers, employees, and shareholders.

Additionally, the airline has been fined a record A$90 million for unlawfully terminating 1,800 ground staff during the pandemic.

According to the Australian Financial Review, in late August, major pension fund investors in Qantas urged the company to consider the Federal Court’s ruling in deciding on senior executive salaries.

($1 = 1.5389 Australian dollars)