Qantas 2005 Annual Report Download - page 59

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57
Description Rationale
LEGACY PLANS
Senior Manager Long-Term Incentive Plan2
Certain Executives were awarded a number of shares subject to a
four-year holding lock provided the Executive remains employed
by the Qantas Group. These shares will be held on behalf of each
Executive by the Trustee until the expiry of the holding lock period.
Any dividends paid on the shares will be distributed to the relevant
Executive.
This was an interim plan following the suspension of the Qantas
Long-Term Executive Incentive Plan. No awards have been made
since April 2003.
2002 Performance Bonus Plan
In 2001/02, the CEO, CFO and select Executives were required to
salary sacrifice at least 10 per cent of their bonus into deferred
shares (Shares). Under a matching award, participants were
granted one Right for every nine Shares allocated.
The program aligned remuneration and growth in shareholder
value. No Shares have been allocated under this Plan since October
2002.
Qantas Long-Term Executive Incentive Plan – suspended in 2002
Under QLTEIP, Executives were granted Entitlements to unissued
shares in Qantas in the years ended 30 June 2000, 2001 and
2002. Vesting is based on Qantas relative TSR compared to ASX
200 Industrials Index and a basket of global airlines. Entitlements
vest between three and five years following award date and are
generally conditional on the Executive remaining employed. To
the extent that Entitlements vest, they may be converted into
ordinary shares within eight years of the award date in proportion
to the gain in share price. Entitlements will lapse on the eighth
anniversary of the date of award.
The first index is determined as the percentile performance of
Qantas (based on average Relative TSR) within a modified S&P/
ASX 200 Industrials Index. The index excludes Banks, Infrastructure
and Utilities, Insurance, Investments and Financial Services, Media,
Property Trusts and Telecommunications. At grant date, it included
86 stocks.
At grant date, the basket of global airlines included Air Canada,
Air New Zealand, AMR Corporation (American Airlines), British
Airways, Cathay Pacific, Delta Airlines, Japan Airlines, KLM Royal
Dutch Airlines (data no longer applicable), Lufthansa, Northwest
Airlines, Singapore Airlines and UAL Corporation (United Airlines).
For further details of QLTEIP, see page 49.
This performance condition aligns remuneration and growth in
shareholder value. The plan was suspended in July 2002.
2 The relevant plan for the Executive Directors is the 2002 Executive Director Long-Term Incentive Plan.
Qantas Annual Report 2005
~Directors’ Report~
for the year ended 30 June 2005
DIRECTOR AND EXECUTIVE REMUNERATION DISCLOSURES continued