Qantas 2006 Annual Report Download - page 65

63
Qantas Annual Report 2006
Directors’ Report
for the year ended 30 June 2006
REMUNERATION OF KEY MANAGEMENT EXECUTIVES FOR THE YEAR ENDED 30 JUNE 2006 CONTINUED
Equity Settled
PSP PRP Sen Mgr LTI QLTEIP Total
4Share-Based Payment Year $ $ $ $ $
Denis Adams 2006 153,995 (120,365) 106,750 – 140,380
2005 88,083 55,966 80,466 – 224,515
John Borghetti 2006 217,715 125,032 92,800 – 435,547
2005 138,416 73,415 92,032 – 303,863
Kevin Brown 2006 130,256 86,165 69,600 – 286,021
2005 88,083 51,752 69,937 55,417 265,189
David Cox 2006 111,647 75,636 35,273 – 222,556
2005 n/a n/a n/a n/a n/a
Grant Fenn 2006 130,256 94,348 69,600 – 294,204
2005 88,083 59,275 69,168 – 216,526
Alan Joyce 2006 188,052 73,518 35,273 – 296,843
2005 81,818 39,768 34,673 – 156,259
Total 2006 931,921 334,334 409,296 – 1,675,551
2005 484,483 280,176 346,276 55,417 1,166,352
Consistent with practice, an ex-gratia payment was made to Mr Adams to ensure:
• transitional arrangements were suitable to Qantas; and
• extinguishment of all rights and claims over long-term incentive plans which could otherwise be realised in full if not for the employee’s termination.
Directors’ and Offi cers’ liability insurance has not been included in the above fi gures since it is not possible to determine an appropriate allocation basis.
Executives are assumed to use their annual leave benefi t in any year and any leave not taken at termination will be refl ected in their termination benefi t.
Performance Related Remuneration FAR & Other1 Total
Cash-Based Equity-Based
Remuneration Components as a
Proportion of Total Remuneration PCP
PSP & Sen
Mgr LTI2PRP Total
Geoff Dixon 19% 15% 9% 43% 57% 100%
Peter Gregg 14% 15% 5% 34% 66% 100%
Denis Adams – 13% (6%) 7% 93% 100%
John Borghetti 15% 10% 4% 29% 71% 100%
Kevin Brown 14% 12% 5% 31% 69% 100%
David Cox 16% 12% 6% 34% 66% 100%
Grant Fenn 15% 13% 6% 34% 66% 100%
Alan Joyce 15% 16% 5% 36% 64% 100%
1 Other Remuneration consists of travel entitlements, the annual accrual of end of service payments and other benefits.
2 In the case of Mr Dixon and Mr Gregg, this was the 2002 Executive Director Long-Term Incentive Plan.
The total percentages are derived from the 2006 Remuneration tables on pages 61 to 62. As the Remuneration table is prepared on an accrual basis and the
equity benefit is valued at grant date in accordance with Accounting Standards, the percentages disclosed do not reflect the annual allocation of performance
related remuneration. To understand the target annual reward mixes of each of the Executives, refer to the unaudited Executive Remuneration Philosophy and
Objectives on page 54.
In accordance with the Corporations Regulations 2M.3.03 and Schedule 5B the following information is provided:
Cash Plan Incentive Share-Based Payment
Performance Remuneration
Affecting Future Periods1
Awarded Forfeited Awarded Forfeited 2007 2008 2009
Geoff Dixon 73% 27% 95% 5% 893,217 128,083 –
Peter Gregg 73% 27% 95% 5% 488,599 139,744 –
Denis Adams n/a n/a n/a n/a n/a n/a n/a
John Borghetti 73% 27% 95% 5% 899,174 649,441 520,179
Kevin Brown 73% 27% 95% 5% 627,308 496,838 427,742
David Cox 73% 27% 95% 5% 579,864 476,022 419,307
Grant Fenn 73% 27% 95% 5% 631,278 496,838 427,742
Alan Joyce 73% 27% 95% 5% 613,910 493,243 427,742
1 Performance remuneration granted under the Performance Equity Plan for the 2005/06 year provides remuneration in future years. The maximum value has been determined
at grant date and amortised in accordance with the accounting standard. The minimum value of the grant is $nil should performance conditions not be satisfied. Performance
remuneration granted in prior years has been included in the above disclosure. This disclosure includes the 2006 Final Dividend payable on 4 October 2006 (and any related
distributions payable by the Qantas Deferred Share Plan Trustee) but does not include future dividends yet to be declared.