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71 Qantas Annual Report 2008
Directors’ Report
for the year ended 30 June 2008
Summary of Key Contract Terms
Non-Executive Directors
In addition to FAR and the associated superannuation contributions, all Non-Executive Directors and eligible benefi ciaries 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 fl ights 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 $2,430,000 (1 Jul 07 – 31 Dec 07)
$2,630,000 (from 1 Jan 08)
$1,450,000 (1 Jul 07 – 31 Dec 07)
$1,520,000 (from 1 Jan 08)
FAR can be taken as cash or non-cash components such as motor vehicles and superannuation contributions.
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 Qantas 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.
Equity awards Equity awards are issued on the same basis as awards to other Qantas Executives, and are governed by the
Terms & Conditions of the DSP and the Rules approved for each grant. Generally, any Rights which have not
vested lapse on cessation of employment.
Mr Dixon’s employment agreement provides that, at termination, unvested Rights awarded under the PRP will
remain in force (as if the CEO was remaining in employment), subject to both of the following conditions:
if termination is initiated by Qantas, there will be a pro rata continuation of awards at termination for the
parts of the performance period served under each award; and
any awards where less than 18 months of the performance period relating to that award has been served
will lapse.
This approach refl ects practice for Chief Executive Offi cers in certain S&P/ASX 50 Index companies. No vesting is
allowed on long-term equity awards where less than 18 months of the performance period has been served.
•
•
Travel entitlements Available to the Executive and eligible benefi ciaries:
Each calendar year whilst employed and post employment:
four international trips
12 domestic trips
•
•
four international trips
12 domestic trips
•
•
Performance Cash Plan Target of 75% of FAR Target of 65% of FAR
Actual PCP may be greater than or less than the target amount as determined by the Qantas Board to refl ect
achievement of personal KPIs.
Remuneration Report (Audited) continued
For personal use only