Qantas 2005 Annual Report Download - page 65

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63
DIRECTOR AND EXECUTIVE REMUNERATION DISCLOSURES continued
SUMMARY OF KEY CONTRACT TERMS continued
Specified Executives
Contract details
Denis
Adams
Fiona
Balfour
John
Borghetti
Kevin
Brown
Grant
Fenn
Alan
Joyce
Existing contract end date 31 Dec 2006 1 Nov 2006 31 Dec 2007 21 Oct 2006 31 Oct 2009 30 Oct 2008
Fixed Annual Remuneration
at 30 June 2005
$730,000 $650,000 $900,000 $730,000 $730,000 $650,000
FAR can be taken as cash or non-cash components such as motor vehicles and superannuation
contributions.
End of service payments Expressed as number of months FAR if completed at least five years service under a fixed contract.
18 months 12 months 12 months 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 three and six months, however Qantas may choose to make payment in lieu.
Mr Brown is entitled to six 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 Borghetti receives an additional six months FAR if he remains in employment with Qantas until
31 December 2007.
Travel entitlements Specified Executives and eligible beneficiaries are entitled to between two and four international and six
and 12 domestic trips per annum, at no cost to the individual. Post employment the entitlements are two
international and six domestic trips.
Performance Cash Plan
Annual target cash incentive is 30% of FAR. Actual may be greater than or less than the target amount, as
determined by the Remuneration Committee, to reflect achievement of personal key performance indicators.
ENVIRONMENTAL OBLIGATIONS (UNAUDITED)
The Qantas Group’s operations are subject to a range of Commonwealth, State, Territory and international environmental legislation. The
Qantas Group is committed to a high standard of environmental performance and the Board places particular focus on the environmental
aspects of its operations through the SESC, which is responsible for monitoring compliance with these regulations and reporting to the Board.
The Directors are satisfied that adequate systems are in place for the management of the Qantas Group’s environmental exposures and
environmental performance. The Directors are also satisfied that all relevant licences and permits are held and that appropriate monitoring
procedures are in place to ensure compliance with those licences and permits. Any significant environmental incidents are reported to the
Board.
The Directors are not aware of any breaches of any environmental legislation or of any significant environmental incidents during the
financial year which are material in nature.
INDEMNITIES AND INSURANCE (UNAUDITED)
Under the Qantas Constitution, Qantas indemnifies, to the extent permitted by law, each Director and Secretary of Qantas against any
liability incurred by that person as an officer of Qantas.
The Directors listed on pages 32 to 34 and the Secretaries of Qantas, being Brett Johnson and Janine Smith, have the benefit of the
indemnity in the Qantas Constitution. Members of the Qantas Executive Committee listed on page 34 have the benefit of an indemnity
to the fullest extent permitted by law and as approved by the Board of Directors. In respect of non-audit services, KPMG, Qantas’ auditor,
has the benefit of an indemnity to the extent KPMG reasonably relies on information provided by Qantas which is false, misleading or
incomplete. No amount has been paid under any of these indemnities during 2004/05 or to the date of this report.
Qantas has insured against amounts which it may be liable to pay on behalf of Directors and Officers or which it otherwise agrees to pay
by way of indemnity.
During the financial year, Qantas paid a premium for Directors’ and Officers’ liability insurance policies, which cover all Directors and
Officers of the Qantas Group.
Details of the nature of the liabilities covered, and the amount of the premium paid in respect of, the Directors’ and Officers’ insurance
policies are not disclosed, as such disclosure is prohibited under the terms of the contracts.
Qantas Annual Report 2005
~Directors’ Report~
for the year ended 30 June 2005