Qantas 2003 Annual Report Download - page 39

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page 37
Spirit of Australia
DIRECTORS’ REPORT continued
for the year ended 30 June 2003
NON-VESTED REMUNERATION
Long-Term Incentive Plans
Qantas Long-Term Incentive Deferred Share Plan (LTIDSP)
During the year, Executive Directors and Senior Executives were granted Qantas shares under the LTIDSP. These shares were purchased on-market
and are being held in trust for up to four years, after which time they will be transferred to all eligible Executives still employed by the Qantas Group.
Geoff Dixon and Peter Gregg are entitled to a bonus allocation of one share for every nine held upon transfer.
The cost of providing benefits to Executives under the LTIDSP is accrued in the profit and loss account over the period in which the benefits are
earned (ie from grant date to transfer date).
The following shares were granted under the LTIDSP during the year. No shares were granted under the LTIDSP in previous years.
Long-Term Incentive
Deferred Share Plan
Executive Directors Number of Shares Allocated Vesting Date
Geoff Dixon1250,000 31 December 2005
Peter Gregg2150,000 20 August 2006
Executive Officers
John Borghetti180,000 30 December 2006
Denis Adams170,000 30 December 2006
Kevin Brown160,000 30 December 2006
David Forsyth160,000 30 December 2006
Paul Edwards160,000 30 December 2006
1All shares were purchased on-market at an average price of $3.80.
2All shares were purchased on-market at an average price of $3.70.
Qantas Long-Term Executive Incentive Plan (QL-TEIP)
In previous years, Entitlements over unissued ordinary shares in Qantas were awarded to Executive Directors and other Senior Executives under
the QL-TEIP introduced in the 1999/00 financial year. The QL-TEIP has now been terminated and as such no Entitlements have been granted in
the 2002/03 financial year.
Entitlements awarded under the QL-TEIP in prior years may vest 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 t he extent that any Entitlements vest, they may be converted into Qantas 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 award will expire.
During the 2002/03 financial year, the following movements in Entitlements took place:
Number of Number of
Entitlements Entitlements
Entitlements available for vesting at 30 June 2002 37,601,500
Entitlements issued –
Entitlements lapsed (1,180,500)
Entitlements vested (5,193,595)
Vested Entitlements lapsed 125,083
Net vested Entitlements (5,068,512)
Entitlements available for vesting at 30 June 2003 31,352,488