Qantas 2000 Annual Report Download - page 34

Download and view the complete annual report

Please find page 34 of the 2000 Qantas annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 52

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52

32
DIRECTORS’ REPORT CONTINUED
FOR THE YEAR ENDED 30 JUNE 2000
SHARE ENTITLEMENTS
On 17 November 1999, Qantas awarded a total of
10,219,000 entitlements to be issued shares in Qantas to
146 senior executives under the Qantas Long-Term Executive
Incentive Plan which was approved by shareholders at the
1999 Annual General Meeting. These entitlements may vest
and be convertible to shares between three and five years
following award date, conditional on the executive remaining
a Qantas Group employee and on the achievement of specific
performance hurdles set by the Board. These hurdles are set
by reference to the percentile performance of Qantas (based
upon average relative total shareholder return) within a
modified S&P ASX 200 Index and within an international
airline “peer group”.
To the extent that any entitlements vest, they may be
converted into shares within eight years of award in
proportion to the gain in share price from the date the
entitlements are awarded to the date they are converted to
shares. Entitlements not converted to shares within eight
years of award will expire.
No entitlements have vested or expired (other than by way of
eligible employees leaving Qantas) as yet under the Plan, nor
have any shares been issued. Entitlements will be included in
remuneration once they have vested.
Entitlements awarded under the Plan during the year include
amounts granted to Executive Directors and the five most
highly remunerated Executive Officers of Qantas and the
Qantas Group as follows:
Number of Exercise Expiry Value per Total Value
Entitlements 1,2 Price 3Date Entitlement 4Awarded
Executive Directors $ $ $
James Strong 1,110,000 4.99 17 November 2007 0.50 555,000
Gary Toomey 545,000 4.99 17 November 2007 0.50 272,500
Number of Exercise Expiry Value per Total Value
Executive Officers Entitlements 1,2 Price 3Date Entitlement 4Awarded
(excluding Directors) $ $ $
QANTAS AND QANTAS GROUP
Geoff Dixon 545,000 4.99 17 November 2007 0.50 272,500
David Burden 252,000 4.99 17 November 2007 0.50 126,000
Steve Mann 200,000 4.99 17 November 2007 0.50 100,000
Paul Edwards 88,000 4.99 17 November 2007 0.50 44,000
Sandra McPhee 88,000 4.99 17 November 2007 0.50 44,000
Total entitlements outstanding at 30 June 2000 under the Plan are as follows:
Expiry Date Exercise Price 3Number of Entitlements 4
$ 2000 1999
17 November 2007 4.99 9,965,000 5–
1. All entitlements were granted during the financial year. No entitlements have been granted since the end of the financial year.
2. These entitlements do not allow the holder to participate in any share issue of Qantas or the Qantas Group.
3. The market price of Qantas shares at 30 June 2000 was $3.38.
4. The estimated value per entitlement disclosed above is calculated at 30 June 2000 using a Black-Scholes model.
5. 254,000 entitlements lapsed during the year due to the resignation or retirement of the entitlement holder.