Qantas 2014 Annual Report Download - page 59

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57
QANTAS ANNUAL REPORT 2014
Other Benefits Non-cash benefits
Non-cash benefits, as disclosed in the remuneration tables, include travel entitlements while employed and
other benefits.
Travel
Travel concessions are provided to permanent Qantas employees, consistent with practice in the airline industry.
Travel at concessionary prices is on a sub-load basis, i.e. subject to considerable restrictions and limits on
availability. It includes specified direct family members or a nominated travel companion.
In addition to this and consistent with practice in the airline industry, Directors and KMP and their eligible
beneficiaries are entitled to a number of trips for personal purposes at no cost to the individual.
Post-employment travel concessions are also available to all permanent Qantas employees who qualify through
retirement or redundancy. The CEO and KMP and their eligible beneficiaries are also entitled to a number of free
trips for personal purposes. An estimated present value of these entitlements is accrued over the service period
of the individual and is disclosed as a post-employment benefit.
Superannuation
Superannuation includes statutory and salary sacrifice superannuation contributions and is disclosed as a post-
employment benefit.
Other long-term benefits
The accrual of annual leave and long service leave is included in other long-term benefits. The accounting value
of other long-term benefits may be negative, for example where an Executive’s annual leave balance decreases
as a result of taking more than the 20 days annual leave they accrued during the year.
Summary of Key Contract Terms as at 30 June 2014
Contract Details Alan Joyce Gareth Evans Lesley Grant Simon Hickey Jayne Hrdlicka Lyell Strambi
Base Pay $2,125,0001$1,000,000 $800,000 $1,000,000 $1,000,000 $1,000,000
STIP “at target”
opportunity expressed
as a % of Base Pay
120% for
2013/2014
80% for
2013/2014
80% for
2013/2014
80% for
2013/2014
80% for
2013/2014
80% for
2013/2014
(80% for
2014/2015)
(50% for
2014/2015)
(50% for
2014/2015)
(50% for
2014/2015)
(50% for
2014/2015)
(50% for
2014/2015)
LTIP “at target”
opportunity expressed
as a % of Base Pay
80% for
2013/2014
50% for
2013/2014
25% for
2013/2014
50% for
2013/2014
50% for
2013/2014
50% for
2013/2014
(120% for
2014/2015)
(80% for
2014/2015)
(55% for
2014/2015)
(80% for
2014/2015)
(80% for
2014/2015)
(80% for
2014/2015)
Travel entitlements An annual benefit of trips for these Executives and eligible beneficiaries during employment2, at no cost to
the individual, as follows:
4 Long Haul 2 Long Haul 2 Long Haul 2 Long Haul 2 Long Haul 2 Long Haul
12 Short Haul 6 Short Haul 6 Short Haul 6 Short Haul 6 Short Haul 6 Short Haul
The same benefit is provided for use post-employment, based on the period of service in a senior Executive
role within the Qantas Group.
Notice Employment may be terminated by either the Executive or Qantas by providing six months written notice3.
Each Executive’s contract includes a provision that limits any termination payment to the statutory limit
prescribed under the Corporations Act 2001.
Severance A severance payment of six months’ Base Pay applies where termination is initiated by Qantas3.
1 Base Pay for Mr Joyce is $2,125,000. From 1 January 2014, Mr Joyce elected to forego five per cent of his Base Pay. Therefore, Base Pay was paid using an annual rate of $2,018,750 from
1January 2014.
2 These flights are not cumulative and will lapse if they are not used during the calendar year in which the entitlement arises.
3 Other than for misconduct or unsatisfactory performance.
Remuneration mix
The Base Pay and “at target” STIP and LTIP opportunities are set with reference to external benchmark market data including
comparable roles in other listed Australian companies and international airlines.
The “at target” STIP and LTIP opportunities for the CEO and KMP are detailed in the Summary of Key Contract Terms.
For 2014/2015, the Board has changed the remuneration mix for the CEO and Executive Management to further align incentives with
the immediate priorities of the transformation agenda. The three year performance period of the 2015–2017 LTIP aligns with the
timeframe for achieving the $2 billion cost reductions due for completion by the end of 2016/2017.