Qantas chief gets sky-high package
By Matt O'Sullivan | theage.com.au | 07 October
Mr Dixon's package of almost $12 million this year dwarfs the salaries of his European counterparts and all but one of those in the US - even though Qantas is only 10th among the world's largest airlines.
The revelations are galling for Qantas staff, who have faced a management intent on capping wage rises at 3% a year and that will lay off 1500 workers by Christmas.
Mr Dixon's package is beaten only by that of Glenn Tilton, the boss of UAL Corp, whose largest subsidiary is United Airlines. Mr Tilton took home $US10.3 million ($13.69million) in 2007, including a $US850,000 base salary and $US4.7 million in share awards.
UAL's board has been under attack from United Airlines pilots to reduce Mr Tilton's pay at the same time as the carrier slashes its workforce and grounds a fifth of its planes.
Mr Dixon's package of $11.92 million for the year to June included a $3 million cash bonus and almost $6.4million in share-based payments, Qantas' annual report shows.
It is a huge rise on the year before, when he was awarded $6.5 million. Three months before the $11.1 billion private equity raid on Qantas was made public in November 2006, Mr Dixon also had almost $8 million tipped into his super account when he renewed his contract.
Qantas declared in May this year that it was freezing senior executive pay in response to high fuel prices, just two months before the airline announced the job cuts.
Mr Dixon's latest salary beats even the pay packet of Gerard Arpey, the head of AMR Corporation, which runs the world's largest commercial carrier, American Airlines.
Mr Arpey's total pay was $US4.6million in 2007, including a base salary of $US656,000 and stock awards of $US3.1million.
The Australian also trumps the $US7.73 million Northwest Airlines paid its boss, Douglas Steenland, in 2007, and the $US7.31 million Continental gave its chief executive, Larry Kellner. US Airways, the fifth-largest airline in the US, paid CEO and chairman Douglas Parker a package of $US5.4 million, including a base salary of $US550,000.
The pay of European airline executives is modest in comparison with that for Mr Dixon or the Americans.
"It is an absolute double standard. How shareholders and the board let this happen, you have to wonder," Australian Services Union assistant national secretary Linda White said yesterday.
"Rewarding one of those at the top doesn't mean you have the best airline in the world."
British Airways' boss Willie Walsh pocketed £701,000 ($A1.57 million) for the year to March. He turned down a £700,000 bonus after a disastrous opening of Heathrow's Terminal 5 in London.
Air France-KLM paid chief executive and chairman Jean-Cyril Spinetta €1.39 million ($A2.5million) for the year to March, which included €750,000 salary.
Europe's second-largest airline, Lufthansa, gave its chief, Wolfgang Mayrhuber, €2.4 million in 2007, including a €1.4million bonus.
Singapore Airlines paid its boss, Chew Choon Seng, about $S3.5 million ($A3.2 million) for the year to March 31.
Mr Dixon steps down as chief executive on November 28 but will remain a consultant until March.
Qantas would not comment yesterday.
KEY POINTS
Geoff Dixon's package of almost $12 million dwarfs those of other airline chiefs.
Revelation of huge pay comes as the airline plans to lay off 1500 staff.
First published by TheAge.com.au on October 07 2008
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