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41
QANTAS ANNUAL REPORT 2015
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 on page 40.
For 2014/2015, the Board 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 program benefits due for completion by the end of 2016/2017.
This change in pay mix involved a decrease in the STIP opportunity and an increase in the LTIP opportunity for each Executive. The
pay mix changes that apply to the CEO and KMP for 2014/2015 are also detailed in the Summary of Key Contract Terms on page 40.
There is no increase to the total ‘At Target’ remuneration as a result of these changes as the increase in LTIP opportunity is offset by
adecrease in STIP opportunity.
At Qantas, the ‘At Target’ STIP and LTIP awards are normally expressed as a percentage of Base Pay, however, for the purpose of the
following remuneration mix tables, Base Pay, STIP and LTIP opportunities are expressed as a percentage of total ‘At Target’ pay.
Target Remuneration Mix for 2014/2015
Base Pay
%
STIP
%
LTIP
%
Alan Joyce 33 27 40
Tino La Spina 50 25 25
Andrew David 50 25 25
Gareth Evans 43 22 35
Lesley Grant 49 24 27
Jayne Hrdlicka 43 22 35
Simon Hickey 43 22 35
Lyell Strambi 43 22 35
The target remuneration mix does not match the statutory remuneration mix for 2014/2015, as:
–Actual STIP and LTIP outcomes each year differ from the ‘At Target’ level
–Statutory reward mix is calculated on an accrual basis in accordance with accounting standards, so each year’s statutory
remuneration includes a portion of the value of share-based payments awarded in previous years. A portion of current year awards
are also deferred over future periods where there are performance conditions or restriction periods
Performance-related Remuneration
Cash-based Equity Settled Share-based
Statutory Remuneration Mix
Base Pay
& Other
%
Cash
Incentives
%
STIP
%
LTIP
%
Alan Joyce 32 28 634
Tino La Spina 64 22 311
Andrew David 49 21 18 12
Gareth Evans 44 21 5 30
Lesley Grant 49 24 621
Jayne Hrdlicka 44 21 5 30
Simon Hickey 59 19 121
Lyell Strambi 57 20 221