AUSTRALIA: Qantas take-over $91m for executives

Qantas executives will reportedly receive a A$91 million pay-out, including $8 million for chief executive Geoff Dixon, on their last day of employment with the ¡°old¡± airline if the controversial $11.1 million Airline Partners Australia take-over goes ahead. The executives will cash into the new airline with cash and share incentives from the new private […]


Qantas executives will reportedly receive a A$91 million pay-out, including $8 million for chief executive Geoff Dixon, on their last day of employment with the ¡°old¡± airline if the controversial $11.1 million Airline Partners Australia take-over goes ahead.

The executives will cash into the new airline with cash and share incentives from the new private equity owners, including bonuses of up to 200 percent of their cash salaries; a stake in the new company of up to 4.5 percent; and a performance fee for Dixon as high as $60 million.

They will reportedly get the pay-out, for shares worth millions of dollars, even when they have not met all normal performance measures.

Qantas said the reports overstated the value of accelerated equity by more than $23 million and said the inflated figures appeared to include shares and rights from previous incentive plans, dating to 1999.

The reports said Dixon and the chief financial officer Peter Gregg will receive about $5 million from the old company before they report for work at the new company.

Unions expect to lose jobs under the new company, which is likely to send more maintenance work overseas.

The pay-outs for shares and share options are reportedly related to ¡°change of ownership¡± provisions in the managers¡¯ existing contracts, and the necessity for new owners to acquire all the outstanding shares of the company.