Qantas 2004 Annual Report Download - page 72

9. Director and executive disclosures continued
SUMMARY OF KEY CONTRACT TERMS
Non-Executive Directors
In addition to Director’s Fees and the associated superannuation contributions, all Non-Executive Directors and eligible beneficiaries receive
travel entitlements. The Chairman is entitled to 4 international trips and 12 domestic trips per calendar year and all other Non-Executive
Directors are entitled to 2 international trips and 6 domestic trips each calendar year. These flights are not cumulative and will lapse if they
are not used during the calendar year in which the entitlement relates. Post employment, the Chairman is entitled to 2 international trips
and 6 domestic trips per year of service and all other Non-Executive Directors are entitled to 1 international and 3 domestic trips per year
of service.
Executive Directors
The key contract and other terms of the two Executive Directors are set out below. The two Executive Directors have renewed/revised their
contracts effective 1 July 2004. The term of Mr Dixon’s contract extends beyond the current contract in place at 30 June 2004 as noted
below. Mr Gregg’s tenure remains the same. The impact of the change in contracts has been noted in the relevant categories below:
Contract details Geoff Dixon Peter Gregg
Length of existing contract 1 January 2002 to 31 December 2005 1 January 2002 to 31 December 2006
New contract 1 July 2004 to 1 July 2007
Date of review of contract Number of months prior to the end of contract:
6 months (New contract nil months) 6 months
Fixed Annual Remuneration (FAR) $2,000,000 $1,200,000
FAR can be taken as cash or non-cash components such as motor vehicles and superannuation
contributions. In addition, Mr Dixon and Mr Gregg receive allowances for financial planning and
preventative healthcare.
End of service payments Number of months FAR and other payments available on early termination of contract:
24 months plus $500,000 18 months plus $120,000
Additional months FAR and other payments available on termination:
13.2 months after 31 December 2005 18 months plus $275,000 after 31 December 2006
Mr Dixon was entitled to a payment of $100,000 on termination or otherwise on 31 December
2004. This was paid early as part of Mr Dixon’s contract renegotiation.
Stock Performance Rights (SPRs) held by Mr Dixon and Mr Gregg, payable on conclusion of con-
tract term, will be paid early as part of contract renegotiation/revision. The benefit was related to
growth in the Qantas share price. No SPRs are included in the new/revised contracts.
575,000 SPRs paid early at $316,250 431,000 SPRs paid early at $237,050
Termination of employment Termination without notice: employment can be terminated immediately without notice (or
payment in lieu of notice) if, in the opinion of the CEO (or the Board in the case of the CEO),
the Executive is or has been engaged in serious misconduct, becomes bankrupt or makes an
arrangement or composition with creditors, or wilfully and persistently breaches their employment
contract.
Termination with notice: employment can be terminated during the contract period with 12
months written notice.
Voluntary termination: voluntary termination requires written notice of 6 months.
Mr Gregg is entitled to 12 months FAR (in addition to existing end of service arrangements), if his
employment is not required by an incoming CEO or he is offered a position which is significantly
diminished in terms of responsibility. Mr Gregg is also entitled to 6 months FAR (in addition to
existing end of service arrangements) if he voluntarily terminates after a change in CEO.
70 Qantas Annual Report 2004
Notes to the Financial Statements continued
for the year ended 30 June 2004