Qantas 2001 Annual Report Download - page 34

p32 QANTAS CONCISE ANNUAL REPORT 2001
SHARE ENTITLEMENTS
On 24 November 2000 and 21 February 2001, Qantas awarded
40,550,000 and 760,000 entitlements respectively to be issued shares
in Qantas to 162 senior executives under the Qantas Long-Term
Executive Incentive Plan . These entitlements may vest and be
convertible to shares between three and five years following award
date, conditional on the executive remaining a Qantas Group
employee and on the achievement of specific performance hurdles
set by the Board. These hurdles are set by reference to the percentile
performance of Qantas (based upon average relative total shareholder
return) within a modified S&P ASX 200 Index and within an
international airline “peer group”.
To the extent that any entitlements vest, they may be converted into
shares within eight years of award in proportion to the gain in share
price from the date the entitlements are awarded to the date they are
converted to shares. Entitlements not converted to shares within eight
years of the vesting date will expire.
No entitlements have vested or expired (other than by way of eligible
employees leaving Qantas) as yet under the Plan, nor have any shares
been issued. Entitlements will be included in remuneration once they
have vested.
Entitlements awarded under the Plan during the year include amounts
granted to Executive Directors and the five most highly remunerated
Executive Officers of Qantas and the Qantas Group as follows:
Directors’ REPORT (continued)
FOR THE YEAR ENDED 30 JUNE 2001
Number of Exercise Expiry Value per Total Value
Entitlements 1,2 Price 3Date Entitlement 4Awarded
Executive Directors $ $ $
Geoff Dixon 1,500,000 3.44 24 November 2008 0.89 1,335,000
Peter Gregg 750,000 3.44 24 November 2008 0.89 667,500
Number of Exercise Expiry Value per Total Value
Executive Officers Entitlements 1,2 Price 3Date Entitlement 4Awarded
(excluding Directors) $ $ $
QANTAS AND QANTAS GROUP
David Burden 650,000 3.44 24 November 2008 0.89 578,500
Steve Mann 650,000 3.44 24 November 2008 0.89 578,500
David Forsyth 650,000 3.44 24 November 2008 0.89 578,500
George Elsey 430,000 3.44 24 November 2008 0.89 382,700
Paul Edwards 430,000 3.44 24 November 2008 0.89 382,700
Total entitlements outstanding at 30 June 2001 under the Plan are as follows:
Exercise Number of Entitlements Value per Entitlement
Price 32001 2000 2001 2000
Expiry Date $ $$
17 November 2007 4.99 8,115,500 9,965,000 0.48 0.50
24 November 2008 3.44 35,250,000 – 0.89 n/a
24 November 2008 3.62 760,000 – 0.84 n/a
1All entitlements were granted during the financial year. No entitlements have been granted since the end of the financial year.
2These entitlements do not allow the holder to participate in any share issue of Qantas or the Qantas Group.
3The market price of Qantas shares at 30 June 2001 was $3.50 (30 June 2000: $3.38).
4The estimated value per entitlement disclosed above is calculated at 30 June 2001 using an acturial simulation methodology, taking into account the
performance hurdles and the possibility of conversion of vested entitlements before the expiry date.
In addition to the amounts noted above, $1,000 of Qantas shares were issued on 3 November 2000 for nil consideration under the Qantas
Profitshare Scheme to eligible employees (which excludes Non-Executive Directors). This equated to 259 shares per eligible employee at an
average price at date of issue of $3.86. These amounts have been excluded from the above disclosure as they involved no cost to Qantas.