Qantas 2004 Annual Report Download - page 74

9. Director and executive disclosures continued
SUMMARY OF KEY CONTRACT TERMS continued
Specified Executives
Contract details Kevin Brown Grant Fenn David Forsyth
Length of contract 22 October 2001 to 1 November 1999 to 20 December 1999 to
21 October 2006 31 October 2004 15 December 2003
Fixed Annual Remuneration (FAR) $700,000 $700,000 $700,000
$730,000 effective 1 July 2004 $730,000 effective 1 July 2004 Not applicable
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:
12 months 12 months 12 months
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.
Mr Brown is entitled to 6 months FAR (in addition to existing end of service arrangements) if his
employment is not required by an incoming CEO or he is offered a position which is significantly
diminished in terms of responsibility.
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.
EQUITY INSTRUMENTS
Set out in the following tables are the holdings of equity instruments granted as remuneration to Executive Directors and Specified
Executives. No other Director, Specified Executive or personally related entities directly or beneficially held any other shares, options or
rights in the Qantas Group other than as set out below.
Performance Share Plan (PSP)
Details of entitlements over shares in Qantas provided as remuneration during the financial year to Executive Directors are set out below.
No performance shares were granted to Specified Executives during the 30 June 2004 year. For more information on the operation of the
PSP, see page 66.
Number of
Performance
Number of Shares Vested
Performance and Transferred
Value at Balance at Shares Granted to the Executive Balance at
Grant Date Grant Date 30 June 2003 during the Year during the Year 30 June 2004
Executive Directors
Geoff Dixon 16 Oct 03 $3.62 – 125,000 (62,500) 62,500
Peter Gregg 16 Oct 03 $3.62 – 80,000 (40,000) 40,000
No amount has been paid, or is payable in relation to these performance shares.
Notes to the Financial Statements continued
for the year ended 30 June 2004
72 Qantas Annual Report 2004