As in previous years the ASU is sending representatives to the Qantas AGM to ask some hard questions ... We don't expect to be the only ones given the record loss Qantas has sustained. We expect many shareholders will question how CEO Alan Joyce and the Board can hold their jobs.
This year the Qantas Annual General Meeting is being held on Friday 24th October 2014 at 11am in Plenary 3 at the Melbourne Convention and Exhibition Centre.
Meeting notices and proxy forms should have arrived for staff who are shareholders. Once again shareholders are being asked to vote on the re-election of Directors, the remuneration report, the long term incentive plan for Alan Joyce and constitutional changes.
Over a number of years the ASU has recommended voting against the remuneration report – nothing we have seen this year changes our mind on this course of action.
While we agree with the Board decision to freeze executive pay and incentives we think the long term incentives plan that is proposed for Senior Executive and now for the broader management population is too generous and unfairly rewards those at the top who have ripped the heart out of the airline and whose strategies have resulted in this massive loss.
The long term incentive plan for Alan Joyce is to be voted on as well.
This is about awarding Alan Joyce rights to 3,248,000 rights, each of which equals one fully paid Qantas share, if Qantas makes certain performance targets (the share rights are valued at $0.785 each or $2,549,680 in total).
This generous share grant for reaching performance targets seems over the top. We do not see why Alan Joyce should be rewarded for offshoring jobs and making staff redundant freezing salaries and damaging the Qantas Brand.
Voting for the Directors
Two of the existing directors are up for re-election Richard Goodmanson and Barbara Ward.
Mr Goodmanson and Ms Ward have been directors since 2008, while both have airline experience they, like the rest of the directors, must be held to account for the company's very poor performance.
Rewarding those at the top while making 5000 staff redundant and offshoring work is not in our view in the best long term interest for Qantas – it is time for a change.
We recommend voting in favour of the constitutional changes proposed to ensure consistency with the Qantas Sale Act and ASX process.
What to do?
You can vote against any or all of the resolutions. Whatever you do it is important to express your view.
The ASU's recommendation is to vote against most of the resolutions.
You can also attend the meeting in Melbourne or proxy your vote to ASU officials who are attending the meeting.
In your AGM pack from Qantas there was a proxy form, all you need to do is fill it in by following the instructions below.
Your proxy form must be lodged by 11:00am AESDT on Wednesday 22nd October 2014 to be valid.
Who can be proxies?
ASU delegates and officials will be attending the meeting. The following are the ASU reps attending the meeting who you can give your proxy to. You only need to choose one of them as your proxy:
- Linda White (ASU)
- Imogen Sturni (ASU)
- Matt Norrey (ASU)
Qantas 2014 AGM – How to Vote
- In Step 1 – Name one person to be your proxy (see names listed above)
- In Step 2 – Either direct your proxy how to vote by marking a box against the resolutions, or just mark the single box in Step 2 if you want your proxy to decide how to vote
- In Step 3 – Sign and date the form
- Post, fax or complete your proxy form online to the Qantas Share Registry to reach them by 11:00am AESDT on Wednesday 22nd October 2014. To post: Use the reply paid envelope you received or post to Locked Bag A14, Sydney South NSW 1235. To fax: Fax to (02) 9287 0309. Online: Vote online at http://www.qantas.com.au/travel/airlines/investors-annual-meetings/global/en
- Fax a copy of your proxy form to the ASU National Office on (03) 9342 1499 or give a copy to your ASU delegate or organiser by 22nd October 2014 so we know who we are representing. If you vote online, send us an email at email@example.com
- If you have lost your proxy form or didn't receive one, a new form can be requested by phoning the share registry on 1800 177 747
[DOWNLOAD the full bulletin below to see the Proxy Form]