Qantas 2003 Annual Report Download - page 40

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page 38
2003 Qantas Annual Report
DIRECTORS’ REPORT continued
for the year ended 30 June 2003
The following Entitlements were outstanding at 30 June 2003:
Number of Entitlements1
Value Net Net
Exercise at Grant Vested Unvested Total Vested Unvested Total
Expiry Date Price Date22003 2003 2003 2002 2002 2002
17 Nov 2007 $4.99 $1.13 5,068,512 642,488 5,711,000 – 5,901,500 5,901,500
24 Nov 2008 $3.44 $0.82 – 29,600,000 29,600,000 – 30,590,000 30,590,000
20 Feb 2009 $3.62 $0.77 – 760,000 760,000 – 760,000 760,000
6 Dec 2009 $3.25 $1.14 – 350,000 350,000 – 350,000 350,000
To tal 5,068,512 31,352,488 36,421,000 – 37,601,500 37,601,500
1The Entitlements do not allow the holder to participate in any share issue of Qantas or the Qantas Group.
2The estimated value per Entitlement disclosed above is calculated at grant date using the Black-Scholes Option Valuation Methodology.
As the QL-TEIP has now terminated, there is no profit and loss impact of existing entitlements.
The following table shows the value of benefits accruing to Executive Directors and the five highest paid Senior Executives under the LTIDSP and the
QL-TEIP in the 2002/03 financial year. The value of benefits is based upon an actuarial estimate at grant date and is accrued over the period in which
the benefits are earned, being the period from grant date to the earliest date at which benefits could vest.
Qantas Qantas
Long-Term Incentive Long-Term Executive
Deferred Share Plan Incentive Plan Total
Executive Directors $ $ $
Geoff Dixon 158,333 495,535 653,868
Peter Gregg 75,682 218,811 294,493
Executive Officers
John Borghetti 38,000 131,344 169,344
Denis Adams 33,250 167,080 200,330
Kevin Brown 28,500 133,000 161,500
David Forsyth 28,500 203,719 232,219
Paul Edwards 28,500 131,344 159,844
In addition to the long-term incentive plans noted above, the service contracts of certain Executive Directors and Senior Executives provide for
the payment of a bonus on the completion of five years service. This bonus is payable when the Executive Director or Senior Executive ceases
employment with the Qantas Group and is included in remuneration at that time.
Post-Retirement Benefits
A limited number of free of charge flights are available to Executive Directors and certain Senior Executives both whilst they are employed
by the Qantas Group and after they have retired. The post-retirement benefit is determined on a cost to the company basis and is accrued over
the period of service, taking into account historical and projected usage rates. The total post-retirement benefits accrued for current Executives was
$1,755,000 at 30 June 2003, $312,000 of which was accrued during the year. The amount accrued during the current year for individual Executive
Directors and the five highest paid Senior Executives is as follows:
Post Retirement
Benefit
Executive Directors $
Geoff Dixon 17,820
Peter Gregg 17,820
Executive Officers
John Borghetti 8,910
Denis Adams 8,910
Kevin Brown 8,910
David Forsyth 17,820
Paul Edwards 8,910