Qantas 2005 Annual Report Download - page 64

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62
DIRECTOR AND EXECUTIVE REMUNERATION DISCLOSURES continued
SUMMARY OF KEY CONTRACT TERMS
Non-Executive Directors
In addition to FAR and the associated superannuation contributions, all Non-Executive Directors and eligible beneficiaries receive travel
entitlements. The Chairman is entitled to four international trips and 12 domestic trips per calendar year and all other Non-Executive
Directors are entitled to two international trips and six domestic trips each calendar year. These flights are not cumulative and will
lapse if they are not used during the calendar year in which the entitlement relates. Post employment, the Chairman is entitled to two
international trips and six domestic trips per year of service and all other Non-Executive Directors are entitled to one international trip and
three domestic trips per year of service.
Executive Directors
The key contract and other terms of the two Executive Directors are set out below:
Contract details Geoff Dixon Peter Gregg
Length of existing contract 1 July 2004 to 1 July 2007 1 January 2002 to 31 December 2006
Fixed Annual Remuneration $2,070,000 (1 July 2004 – 31 December 2004)
$2,160,000 (from 1 January 2005)
$1,260,000 (1 July 2004 – 31 December 2004)
$1,310,000 (from 1 January 2005)
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 and other payments available on early termination of contract:
37.2 months plus $500,000 18 months plus $120,000
Additional months FAR and other payments available on termination:
Not applicable 18 months plus $275,000 after 31 December
2006
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 (or the Board in the case 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.
Voluntary termination: voluntary termination requires written notice of six months.
Mr Gregg is entitled to 12 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. Mr Gregg is also entitled to six months FAR (in addition to
existing end of service arrangements) if he voluntarily terminates after a change in CEO.
Travel entitlements Available to the Executive and eligible beneficiaries:
Each calendar year throughout contract term and post employment:
x four international trips
x 12 domestic trips
x four international trips
x 12 domestic trips
Performance Cash Plan Target of 60% of FAR Target of 50% of FAR
May be greater than or less than the target amount as determined by the Board to reflect
achievement of personal key performance indicators.
Spirit of Australia
~Directors’ Report~
for the year ended 30 June 2005