Qantas Airways Ltd. has imposed pay cuts on Chief Executive Officer Vanessa Hudson and her senior leadership team following a major cyberattack that compromised the personal data of 5.7 million customers. The airline announced in its annual report that Hudson will forfeit A$250,000, while five executive managers will collectively lose A$550,000, bringing the total to A$800,000 (US$522,000).
Key Highlights
- Qantas trims short-term bonuses by 15%, costing CEO A$250,000 and executives A$550,000 combined.
- CEO Vanessa Hudson’s total compensation still rose to A$6.3 million amid a 16% jump in profits.
Despite the cut, Hudson’s overall remuneration rose to A$6.31 million for the year ending June, compared with A$4.38 million a year earlier, reflecting improved financial performance. The decision to dock executive pay underscores Qantas’s efforts to strengthen accountability and governance, especially after recent reputational setbacks, including a A$59 million fine for unlawfully terminating 1,800 employees during the Covid-19 pandemic.
The cyber breach, detected on June 30, prompted swift action from the board amid heightened scrutiny of the airline’s corporate culture by regulators and courts. “This decision demonstrates our commitment to accountability and ownership,” Chairman John Mullen said, emphasizing management’s role in containing the breach and assisting affected customers.
Also Read: US Firm Jane Street Challenges SEBI's Market Manipulation Allegation in Court
Financially, Qantas reported a robust 15% profit growth to A$2.4 billion, underscoring its operational recovery even as it navigates governance and compliance challenges.
