The Dixon millions double up

[Platy]

Dixon enjoys doubling in pay to about $12 million at a time of executive wage freeze:

Qantas chief pockets $12m | smh.com.au

[simongr]

Be interested to see the basis for the increase. I assume there was some element of performance related in relation to the overall profitability of the airline. I would assume it is not based on share price given the lack of ability of the CEO to directly impact the share price apart from on financial performance.

[Platy]

Be interested to see the basis for the increase. I assume there was some element of performance related in relation to the overall profitability of the airline. I would assume it is not based on share price given the lack of ability of the CEO to directly impact the share price apart from on financial performance.

Indeed, Simongr, in fact my impression was that there was a share price component and he was very lucky his "wage" was assessed before the recent share market rollercoaster...but can't verify so yes would be good to find out how the package is calculated.

Aren't CEO's performances judged (in part) on share prices (rightly or wrongly)...?

[oz_mark]

Obviously they adjusted the pays before the 'freeze' in May was announced.

[Platy]

There is some more info in the following article, including comparisons with the packages of other airlines bosses:

Dixon in the $10m high club | smh.com.au

It claims Dixon is the second highest paid in the world and shows that his package dwarfs that of many others...amazing when he handled the private equity deal so abyssmally...

[oz_mark]

There is some more info in the following article, including comparisons with the packages of other airlines bosses:

Dixon in the $10m high club | smh.com.au

It claims Dixon is the second highest paid in the world and shows that his package dwarfs that of many others...amazing when he handled the private equity deal so abyssmally...

He was just lucky that the shareholders protected him from his folly (whether that was their intention or not)

[JohnK]

I cannot see any justification for ridiculous increases in salary. A 100% increase? So Qantas did not want to grant the engineers the type of salary increase they wanted and in turn caused havoc to travellers all over the world so they can have enough to increase the executive salary pool. Wow!

When will this joke that is called executive salaries end?

[NYCguy]

When will this joke that is called executive salaries end?

Go easy!!!

Blame the Board, aren't they the ones who approve bonuses? Or at least write approve the contracts which allow for said bonuses?

I mean, it's not like it was $450 million bonus like Richard Fuld from Lehmann's... A sum which some top-flight Hedge-fund managers were easily exceeding, even doubling, a few years ago.

[simongr]

Shareholders demand profits from the Board. The Board recruits CEOs who can find operational managers to deliver profits. CEOs get paid based on the profits they are tasked to deliver and find people who can deliver.

People bitca and moan about exec salaries and at the same time complain when their pension funds aren't delivering the returns they want.

It's not execs driving salaries - it is shareholders.

When will this joke called exec salaries end? When all industries are nationalised and everyone works for the greater good - because that worked well in communist economies like the Soviet Union (people freezing to death), China (now more consumer based than the west) and North Korea (people starving).

If shareholders did not demand profits from companies and pay managers based on that then Execs would not be paid so much.

[Starship]

Margaret Jackson (Chairwoman) did fall on her sword after the Private equity bid fell over.

As with the banks bailouts, we are privatising profits and socialising debts!

I am wondering however - what was the outcome of the collusion case (cartel pricing) in the US over freight that Qantas / Dixon was implicated in?