Qantas shareholders to vote on revised reputation-linked bonus scheme for boss Vanessa Hudson

Qantas has revised how the carrier’s reputation is tied to chief executive Vanessa Hudson’s bonuses while insisting management remains committed to rebuilding trust with customers.

In November, shareholders will vote on a revamped rewards scheme for Ms Hudson that provides for potentially bigger long-term bonuses over the next three years but includes a reduced 20 per cent weighting for reputation.

Under changes to executive pay introduced in the 2024 financial year after the airline’s governance and reputational disasters, Qantas’ reputation as scored by brand monitors RepTrak has been used to determine how much stock rewards are pocketed by Ms Hudson and her lieutenants under Qantas’ long-term incentive plans.

According to the 2025 annual report, the rewards scheme has been revised again, with the weighting for reputation cut from 33 per cent to 20 per cent to reflect “the ongoing improvement” in Qantas’ reputation scores.

While the RepTrak measure for the 2024-26 bonus plan will not be tested until June 30 next year, Qantas said in the report it had “seen good progress with our score”, which had improved from 61.8 per cent a year ago to 67.4 per cent as at June 30.

“We therefore believe it is appropriate to reduce the weighting of this metric to reflect our ongoing progress while recognising that there is still work to be done,” it said.

The changes provide for Ms Hudson to earn a reduced 140 per cent of her fixed annual pay of $1.7m in cash bonuses, but an increased 180 per cent in long-term rewards.

That’s in line with changing remuneration practices at other top-200 companies where rewards are being weighted to recognise sustained, longer-term performance.

Importantly, however, none of the reputation-linked rights Ms Hudson will receive as part of the revised 20 per cent remuneration target will vest into Qantas shares unless the RepTrak score returns to over 70 per cent, in the range assessed as “strong to excellent”.

“The assessment will seek to ensure that performance improvement is sustained, and not achieved as a one-off, by considering both monthly and rolling annual performance,” Qantas said in Friday’s notice of meeting for the annual gathering in Brisbane on November 7.

Ms Hudson is credited with leading a financial and stock market revival by Qantas, delivering the carrier’s second biggest annual profit last month and overseeing a 46 per cent rise in its share price over the past 12 months.

She and senior management management were docked one-third of their short-term rewards in 2024 as a penalty for the airline’s failings.

However, some investors and critics think the executive team should be punished further in the wake of last month’s Federal Court decision to fine Qantas a record $90 million for illegally sacked 1821 ground staff at the start of the pandemic in 2020.

Justice Michael Lee savaged Qantas in his decision, criticising its “performative remorse” and described its expression of regret as “the wrong kind of sorry”.