Qantas 2006 Annual Report Download - page 67

65
Qantas Annual Report 2006
Directors’ Report
for the year ended 30 June 2006
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 Executive Directors are set out below:
Contract details Geoff Dixon Peter Gregg
Length of existing contract Ongoing Ongoing
Fixed Annual Remuneration $2,160,000 (1 July 2005 – 31 December 2005)
$2,310,000 (from 1 January 2006)
$1,310,000 (1 July 2005 – 31 December 2005)
$1,375,000 (from 1 January 2006)
FAR can be taken as cash or non-cash components such as motor vehicles and superannuation contributions.
End of service payments Mr Dixon and Qantas announced a new contract
of employment relating to his position of CEO on
8 August 2006.
Mr Dixon’s previous employment contract has been
cancelled and the preserved entitlements of 37.2 months
FAR plus $500,000 under that contract will not be paid.
Mr Gregg and Qantas announced a new contract
of employment relating to his position of CFO on
8 August 2006.
Mr Gregg’s previous employment contract has been
cancelled and the entitlements of 36 months FAR plus
$395,000 under that contract will not be paid.
Payment on signing
new contract
Under the new ongoing contract of employment, Mr Dixon
received a benefit totalling $7,660,000 paid as a
superannuation contribution.
Mr Dixon’s new employment contract does not contain any
retirement entitlements other than the notice provisions of
six months by Mr Dixon and 12 months by Qantas.
Under the new ongoing contract of employment, Mr Gregg
has received a cash payment of $4,520,000 on the signing
of his new contract.
Mr Gregg’s new employment contract does not contain any
retirement entitlements other than the notice provisions of
six months by Mr Gregg and 12 months by Qantas.
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.
Travel entitlements Available to the Executive and eligible beneficiaries:
Each calendar year throughout contract term and post employment:
• four international trips
• 12 domestic trips
• four international trips
• 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.