Qantas 2003 Annual Report Download - page 38

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page 36
2003 Qantas Annual Report
DIRECTORS’ REPORT continued
for the year ended 30 June 2003
The amount accrued during the year for each individual Non-Executive Director is as follows:
Post-Retirement
Benefit
Non-Executive Directors $
Margaret Jackson 18,500
Paul Anderson 4,650
Mike Codd 4,650
Trevor Eastwood 4,650
Jim Kennedy 4,650
Trevor Kennedy 4,650
Roger M aynard 4,650
John Schubert 4,650
Nick Tait 4,650
EXECUTIVE DIRECTORS’ AND EXECUTIVE OFFICERS’ REMUNERATION
VESTED REMUNERATION
Details of the nature and amount of remuneration paid and payable to each Executive Director of Qantas and each of the five highest paid Executive
Officers of Qantas and the Qantas Group are set out below:
Non-
Fixed Recurring
Annual Non-Cash Milestone
Remuneration1Benefits Bonus Payment2Total
Executive Directors $$$$$
Geoff Dixon 1,600,000 37,696 – – 1,637,696
Peter Gregg 960,000 38,867 – – 998,867
Executive Officers
John Borghetti 720,000 14,675 – – 734,675
Denis Adams 577,500 15,629 – 100,000 693,129
Kevin Brown 605,000 57,905 – – 662,905
David Forsyth 640,000 2,096 – – 642,096
Paul Edwards 605,000 16,652 – – 621,652
1Fixed Annual Remuneration includes base salary, motor vehicle allowances and salary sacrifice superannuation contributions.
2Denis Adams received a one-off, non-recurring milestone payment during the year related to the successful launch of Australian Airlines in October 2002.
Fixed Annual Remuneration
Executive salary packages are based on the concept of Fixed Annual Remuneration (FAR) which includes guaranteed salary and non-salary components
such as motor vehicle allowances and salary sacrifice superannuation. The amount of FAR is set with reference to market data reflecting the underlying
responsibility of the role and is reviewed annually.
Non-Cash Benefits
Non-Cash Benefits received by Executive Directors and Senior Executives during the year includes limited free air travel for recreational purposes.
Non-Cash Benefits are included in remuneration on a cost to the company basis as incurred. The cost of travel benefits includes the incremental cost
of providing the flight and the associated Fringe Benefits Tax.
Short-Term Incentives
All Executives of the Qantas Group (including Executive Directors) participate in an annual performance-based reward scheme (Executive Bonus
Scheme) which provides for performance bonuses to be paid where pre-determined objectives are met. Performance objectives are based on a
combination of Qantas results and individual performance. Maximum performance bonuses are set as a percentage of Fixed Annual Remuneration
for Executives within Qantas and vary according to level of seniority. Bonuses awarded under the Executive Bonus Scheme are primarily payable in
cash, though in previous years certain Senior Executives received a portion of their bonus as Qantas shares. In such circumstances, the shares
provided were purchased on-market and a holding lock was placed on the shares for two years.
Benefits awarded under the Executive Bonus Scheme, whether payable in cash or shares, are included in remuneration in the period in which the
bonus is earned.
No bonuses have been granted to Executives in relation to the 2002/03 financial year.