Qantas 2004 Annual Report Download - page 73

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9. Director and executive disclosures continued
SUMMARY OF KEY CONTRACT TERMS continued
Executive Directors continued
Contract details Geoff Dixon Peter Gregg
Travel benefits Available to the executive and eligible beneficiaries:
Each calendar year throughout contract term and post employment:
4 international 4 international
12 domestic 12 domestic
Performance Cash Plan
Target of 60% of FAR Target of 50% of FAR
– Cash incentive
May be greater than or less than the target amount. Performance targets are in relation to people,
operational, customer and financial performance.
Deferred Share Plan 250,000 deferred shares and 27,777 share 150,000 deferred shares and 16,666 share
rights vesting on 31 December 2005 rights vesting on 20 August 2006
These deferred shares and share rights were approved by shareholders at the 2002 AGM. The
shares are held in Trust. Whilst the shares remain in Trust, the Trustee may resolve to distribute
as cash to Mr Dixon or Mr Gregg any dividends paid to the Trustee as the registered holder of
the shares. These are reported as an Equity Benefit in the period the dividend is declared and
distribution paid.
Specified Executives
Contract details Denis Adams Fiona Balfour John Borghetti
Length of Contract 10 February 2003 to 1 November 2001 to 1 January 2003 to
31 December 2006 1 November 2006 31 December 2007
Fixed Annual Remuneration (FAR) $700,000 $625,000 $850,000
$730,000 effective 1 July 2004 $650,000 effective 1 July 2004 $900,000 effective 1 July 2004
FAR can be taken as cash or non-cash components such as motor vehicles and
superannuation contributions.
End of Service Payments Number of months FAR if completed at least five years service under a fixed term contract:
18 months 12 months 12 months
Mr Borghetti receives an additional 6 months FAR if he remains in employment with Qantas until
31 December 2007.
Termination of Employment Termination without notice: employment can be terminated immediately without notice (or
payment in lieu of notice) if, in the opinion of the CEO, the Executive is or has been engaged in
serious misconduct, becomes bankrupt or makes an arrangement or composition with creditors, or
wilfully and persistently breaches their employment contract.
Termination with notice: employment can be terminated during the contract period with
12 months written notice or payment in lieu.
Voluntary termination: voluntary termination requires written notice. The contract notice periods
are between 3 and 6 months, however Qantas may choose to make payment in lieu.
Travel Entitlements Executive’s and eligible beneficiaries are entitled to between 2 & 4 international and 6 & 12
domestic flights, at no cost, throughout the year. Post employment the entitlements are
2 international and 6 domestic flights.
Performance Cash Plan Annual target cash incentive is 30% of FAR. Performance targets are in relation to people,
– Cash incentive operational, customer and financial performance.
Qantas Annual Report 2004 71Spirit of Australia
Notes to the Financial Statements continued
for the year ended 30 June 2004