Ex-Virgin Australia boss Jayne Hrdlicka takes off with $50m golden handshake

Virgin Australia’s former chief executive Jayne Hrdlicka will receive $33.5 million worth of shares in the airline as part of a deal she negotiated with its private equity owner, Bain Capital, to exit the business in March this year.

The bumper payday is an incentive reward for readying the airline for its June stock exchange float and a prior deal that saw Middle Eastern carrier Qatar Airways take a 25 per cent stake in Virgin.

The former chief executive’s total remuneration last financial year was more than $50 million in cash and shares, based on Friday’s disclosure that she will be issued 10.44 million in stock that is worth $33.5m, based on the current share price of $3.21.

Ms Hrdlicka led the airline from a coronavirus bankruptcy in November, 2020 to a profitable business by the time of her departure.

Australia’s number two carrier hit the ASX boards in June at $2.90 a share on a market value of $2.3 billion and has since added around 10 per cent in value as investors back the airline to challenge Qantas via its strategic partnership with Qatar Airways.

“This equity investment provides Virgin Australia with access to the scale and expertise of the world’s best airline, strengthening our ability to compete domestically and internationally and driving competition in Australian aviation,” chief executive David Emerson wrote in Friday’s annual report.

The report discloses Ms Hrdlicka may have received six million more shares if she had not left the airline early. Her termination and performance-related payments will be released progressively over a three-year period subject to compliance with post-employment conditions.

Bain’s remaining 25 per cent stake in Virgin is locked up until after Virgin’s first-half results come out in February. After that date the private equity group may sell shares provided their 10-day volume-weighted average price exceeds $3.48.

US-born Ms Hrdlicka is a former Bain consultant and prior chief executive of the a2 Milk Company.

She will start as the chief executive of bottle shop giant Dan Murphy’s in early 2026, and remains as chairperson of Tennis Australia.