Qantas 2007 Annual Report Download - page 72

70 Qantas |Annual Report 2007
Directors’ Report
for the year ended 30 June 2007
Summary of Key Contract Terms continued
Key Management Executives
Contract details John Borghetti Kevin Brown David Cox Grant Fenn Alan Joyce
Existing contract end date Ongoing Ongoing Ongoing Ongoing Ongoing
Fixed Annual Remuneration $1,310,000
(from 1 Jul 2006 - 31 Dec 2006)
$1,380,000
(from 1 Jan 2007)
$800,000 $680,000 $800,000 $720,000
(from 1 Jul 2006 - 31 Dec 2006)
$970,000
(from 1 Jan 2007)
FAR can be taken as cash or non-cash components such as motor vehicles and superannuation contributions.
End of service payments Expressed as number of months FAR if completed at least five years service under a fixed contract. Paid at conclusion of
employment with Qantas or at the request of the Executive.
n/a 12 months n/a 12 months 12 months
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, 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
or payment in lieu.
Voluntary termination: voluntary termination requires written notice. The contract notice periods are between three
and six months, however Qantas may choose to make payment in lieu.
Mr Brown is entitled to six months FAR if his employment is not required by an incoming CEO or he is offered a position
which is significantly diminished in terms of responsibility.
Travel entitlements Key Management Executives and eligible beneficiaries are entitled to between two and four international and six and
12 domestic trips per annum, at no cost to the individual. Post employment the entitlements are two international
and six domestic trips.
Performance Cash Plan Target of 50%
of FAR
Target of 40%
of FAR
Target of 40%
of FAR
Target of 40%
of FAR
Target of 40%
of FAR
Actual PCP may be greater than or less than the target amount, as determined by the Remuneration Committee,
to reflect achievement of personal key performance indicators.
For the 2007/08 performance year, the Board has approved an increase to target cash incentive for Mr Borghetti from
50 per cent to 65 per cent of FAR and for other executives in the Key Management Personnel group from 40 per cent to
55 per cent of FAR.
Environmental Obligations (Unaudited)
The Qantas Group’s operations are subject to a range of Commonwealth, State, Territory and international environmental legislation. The Qantas Group
is committed to a high standard of environmental performance and the Board places particular focus on the environmental aspects of its operations
through the SESC, which is responsible for monitoring compliance with these regulations and reporting to the Board.
The Directors are satisfied that adequate systems are in place for the management of the Qantas Group’s environmental exposures and environmental
performance. The Directors are also satisfied that all relevant licences and permits are held and that appropriate monitoring procedures are in place to
ensure compliance with those licences and permits. Any significant environmental incidents are reported to the Board.
The Directors are not aware of any breaches of any environmental legislation or of any significant environmental incidents during the year which are
material in nature.
Indemnities and Insurance (Unaudited)
Under the Qantas Constitution, Qantas indemnifies, to the extent permitted by law, each Director and Secretary of Qantas against any liability incurred
by that person as an officer of Qantas.
The Directors listed on pages 40 to 43 and the Secretary of Qantas, being Cassandra Hamlin, have the benefit of the indemnity in the Qantas
Constitution. Members of the Qantas Executive Team listed on page 43 have the benefit of an indemnity to the fullest extent permitted by law and
as approved by the Board of Directors. In respect of non-audit services, KPMG, Qantas’ auditor, has the benefit of an indemnity to the extent KPMG
reasonably relies on information provided by Qantas which is false, misleading or incomplete. No amount has been paid under any of these indemnities
during 2006/07 or to the date of this report.
Qantas has insured against amounts which it may be liable to pay on behalf of Directors and Officers or which it otherwise agrees to pay by way
of indemnity.
During the year, Qantas paid a premium for Directors’ and Officers’ liability insurance policies, which cover all Directors and Officers of the Qantas Group.
Details of the nature of the liabilities covered, and the amount of the premium paid in respect of, the Directors’ and Officers’ insurance policies are not
disclosed, as such disclosure is prohibited under the terms of the contracts.
Remuneration Report (Audited) continued
Director and Executive Remuneration Disclosures continued