Qantas 2012 Annual Report Download - page 61

FOR THE YEAR ENDED 30 JUNE 2012
Directors’ Report continued
7 PERFORMANCE RELATED REMUNERATION
Performance Remuneration Affecting Future Periods
The fair value of share-based payments granted is amortised over the service period and therefore remuneration in respect of these
awards may be reported in future years. The following table summarises the maximum value of these awards that will be reported
in the statutory remuneration tables in future years, assuming all performance conditions are met. The minimum value of these
awards is nil, should performance conditions not be satisfied.
Executives
2013
$’000
2014
$’000
2015
$’000
Alan Joyce ,  –
Bruce Buchanan   
Gareth Evans   
Rob Gurney1–––
Simon Hickey   
Jayne Hrdlicka   
Lyell Strambi   
1 Mr Gurney ceased employment with the Qantas Group on 30 June 2012.
STIP Awards – Vesting and Forfeiture
2009/10 STIP awards (granted on 12 August 2010) were delivered entirely to participants in deferred shares that are subject to a
one-year restriction period for 50 per cent of any award and a two-year restriction period for the remaining 50 per cent of the award.
50 per cent of awards under the 2009/10 STIP vested during 2011/2012.
One-third of the 2010/11 STIP awards (granted on 31 August 2011) were delivered to participants in deferred shares that are subject
to a two-year restriction period. Two-thirds of the 2010/11 STIP awards (granted on 31 August 2011) as cash-settled share-based
payments vested during 2011/2012.
LTIP Awards – Vesting and Forfeiture
Awards of Rights under the LTIP may vest and convert to Qantas shares subject to the achievement of long-term performance
hurdles. Any Rights that do not achieve the performance hurdles will lapse.
In 2011/2012 there was nil vesting and nil forfeiture under the 2010-2012 LTIP (granted on 9 September 2009), the 2011-2013 LTIP (granted
on 12 August 2010 and on 29 October 2010) and the 2012-2014 LTIP (granted on 23 August 2011 and 28 October 2011), other than for Mr Gurney.
100 per cent of Rights under the 2010-2012 LTIP lapsed following the testing of performance hurdle tested as at 30 June 2012.
100 per cent of Rights awarded to Mr Gurney under the 2011-2013 LTIP and the 2012-2014 LTIP were forfeited on termination of employment.
Consistent with the approach to LTIP awards on termination of employment outlined on page 55, Mr Gurney may become eligible for
a deferred cash payment to be made at the end of the respective performance periods for the 2011-2013 LTIP and the 2012-2014 LTIP
awards. Any payment would have regard to:
— The value of the LTIP Rights which would have vested had they not lapsed
— The part of the performance periods that Mr Gurney served prior to termination
— The actual level of vesting that is ultimately achieved at the end of the performance periods
Number of Rights Awarded, Vested and Exercised in 2011/2012
Executives Awarded1Vested Exercised2
Alan Joyce ,, – ,
Bruce Buchanan , – –
Gareth Evans , – –
Rob Gurney , – ,
Simon Hickey , – –
Jayne Hrdlicka , – –
Lyell Strambi , – –
1 1,675,000 Rights for Mr Joyce were granted on 28 October 2011 under the 2012-2014 LTIP with a fair value of $0.815 per Right. 2,140,000 Rights for other Executives were granted
on 23 August 2011 with a fair value of $0.86 per Right.
2 The number of Rights exercised represents the number of vested Rights called for by the Executive during the year.
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