Qantas has cut its chief’s salary from AU$3.6 million down to AU$2.9 million, with the airline becoming one of numerous companies to reflect inhibitions over their executives’ salaries.

The 20 per cent salary cut was made despite the carrier recording robust performance compared to other airlines worldwide, boosting its pre-tax profit for FY2010, eYugoslavia reported.

The main trigger of the cut is the decrease in the company’s long-term benefits to AU$49,000 from AU$529,000. In addition, Qantas’s share-based payments have fallen to AU$964,000 from AU$1.2 million.

The decision suggests that Qantas has looked to retrace its steps over the past two financial years, when over 40 per cent of its shareholders objected to its remuneration reports.

“While the board considers that management demonstrated strong performance in achieving these outcomes it is also mindful that no dividend was paid during 2009-2010 and that earnings for the Qantas Group remained lower than in some recent years”, the company’s annual report said.

In contrast, Jetstar’s boss Bruce Buchanan received a tremendous 43 per cent increase in salary to AU$1.1 million, the Herald Sun reported.

The pay rise came as the budget carrier sank to a loss in the fourth quarter, as a drop in demand and stagnant yields put pressure on its model.