Qantas 2013 Annual Report Download - page 93

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QANTAS ANNUAL REPORT 2013
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 vesting conditions are met. The minimum value of these
awards is nil, should vesting conditions not be satised.
Future Expense by Plan Future Expense by Financial Year
STIP Awards LTIP Awards
Executives
2010/11
$’000
2011/12
$’000
2012/13
$’000
2012-20141
$’000
2013-20152
$’000
Total
$’000
2014
$’000
2015
$’000
2016
$’000
Total
$’000
Alan Joyce 32 - 265 512 1,700 2,509 1,517 972 20 2,509
Gareth Evans 10 34 79 138 500 761 464 291 6 761
Lesley Grant 6 23 61 58 200 348 212 131 5 348
Simon Hickey 10 27 73 59 500 669 376 287 6 669
Jayne Hrdlicka 3 27 73 58 500 661 368 287 6 661
Lyell Strambi 9 33 76 138 500 756 460 290 6 756
1 Rights under the 2012-2014 LTIP were granted to Mr Joyce on 28 October 2011 (following approval from shareholders at the 2011 Annual General Meeting) and other Executives
on 23August 2011. The number of Rights granted were determined using the fair value of a Right on 1 July 2011 ($1.015 per Right) being the start of the measurement period. For
accountingpurposes, accounting standards require the share-based payment expense to be calculated using the fair value of a Right on the grant date ($0.815 per Right for
MrJoyceand $0.86 per Right for other Executives).
2 Rights under the 2013-2015 LTIP were granted to all Executives on 2 November 2012 (following approval from shareholders of the CEO’s award at the 2012 Annual General Meeting).
The number of Rights granted were determined using the fair value of a Right on 1 July 2012 ($0.66 per Right) being the start of the measurement period. For accounting purposes,
accounting standards require the share-based payment expense to be calculated using the fair value of a Right on the grant date ($0.88 per Right).
STIP Awards – Vesting and Forfeiture
2009/10 STIP awards (granted on 12 August 2010) were delivered entirely to participants in deferred shares subject to a one-year
restriction period for 50 per cent of the 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 2012/2013.
One-third of the 2010/11 STIP awards (granted on 31 August 2011) were delivered to participants in deferred shares subject
toatwo-year restriction period. No awards under the 2010/11 STIP vested during 2012/2013.
One-third of the 2011/2012 STIP awards (granted on 22 August 2012) were delivered to participants in deferred shares subject
to atwo-year restriction period. Two-thirds of the 2011/12 STIP awards (granted on 22 August 2012) that vested during 2012/2013
weredelivered as cash-settled share-based payments.
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 2012/2013 there was nil vesting and nil forfeiture under 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 Buchanan. 100 per cent of Rights under
the 2011–2013 LTIP lapsed following the testing of performance hurdles as at 30 June 2013.
100 per cent of Rights awarded to Mr Buchanan 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 88, Mr Buchanan 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 Buchanan 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, Exercised and Forfeited in 2012/2013
Executives Awarded Vested Exercised Forfeited
Alan Joyce 2,575,000 – – –
Gareth Evans 757,000 – – –
Lesley Grant 303,000 – – –
Simon Hickey 757,000 – – –
Jayne Hrdlicka 757,000 – – –
Lyell Strambi 757,000 – – –