I seem to have lost a post on this thread too - not that it said anything that violated the TOS. I just said that I thought the OP's Director was right that there was an ethical issue: the compensation is for forgoing the privilege of travelling in business and suffering in Y. If you don't travel in Y, then you don't earn the compo. This is the way you initiate a general change of policy to fly everyone in Y - by demonstrating that people will trade down for far less than they expect the company to trade up.