Qantas Airways Ltd. Chief Executive Officer Alan Joyce will forgo his bonus and pay rise this year, adding to a list of Australian executives who have lost out as local companies post losses and write down assets.
Joyce, who received share-based bonus payments of A$2.7 million ($2.8 million) according to last year’s annual report, won’t take his bonus, spokesman Thomas Woodward said by telephone today. Australia’s largest carrier has forecast its first annual loss in 17 years as a publicly traded company when it reports results on Aug. 23.
BHP Billiton Ltd. Chief Executive Officer Marius Kloppers and petroleum business CEO Mike Yeager said Aug. 4 they would give up bonuses as the company announced $3.3 billion in charges on gas and nickel assets. The S&P/ASX 200 index has returned about 6.3 percent over the past year, compared with a 14.4 percent gain for the U.K.’s FTSE-100 index and a 21.5 percent return for the S&P 500 index in the U.S., according to data compiled by Bloomberg.
“That executives don’t receive bonuses when shareholders are on their knees is exactly how the system should work,” Dean Paatsch, co-founder of corporate governance advisory group Ownership Matters, said by phone from Melbourne. “Giving up bonuses is a gesture that’s open to every executive. Very few take it so good luck to those that do.”
Paul O’Malley, chief executive officer of the country’s largest steelmaker BlueScope Steel Ltd., said last week he won’t get his annual bonus this year as the company battles a rising Australian dollar and lower domestic steel prices.