Qantas 2008 Annual Report Download - page 74

72 Qantas Annual Report 2008
Directors’ Report
for the year ended 30 June 2008
Remuneration Report (Audited) continued
Summary of Key Contract Terms continued
Key Management Personnel
Contract Details John Borghetti Kevin Brown David Cox Grant Fenn Alan Joyce
Existing contract end date Ongoing Ongoing Ongoing Ongoing Ongoing
Fixed Annual Remuneration $1,380,000
(from 1 Jul 07 –
31 Dec 07)
$1,450,000
(from 1 Jan 08)
$865,000 $715,000 $865,000 $1,050,000
(from 1 Jul 07 –
31 Dec 07)
$1,250,000
(from 1 Jan 08)
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 fi ve years service under a fi xed contract. Paid at conclusion
of employment with Qantas or at the request of the Executive.
n/a n/a n/a 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.
Mr Brown is entitled to six months FAR if his employment is not required by an incoming CEO or he is offered a position
which is signifi cantly diminished in terms of responsibility.
Travel entitlements Available to the Executive and eligible benefi ciaries 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 Target of 65%
of FAR
Target of 55%
of FAR
Target of 55%
of FAR
Target of 55%
of FAR
Target of 65%
of FAR
Actual PCP may be greater than or less than the target amount, as determined by the Remuneration Committee,
to refl ect achievement of personal KPIs.
Environmental Obligations
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 Safety, Environment & Security Committee (SESC), which is responsible for monitoring compliance with
these regulations and reporting to the Board.
The Directors are satisfi ed that adequate systems are in place for the management of the Qantas Group’s environmental exposures and
environmental performance. The Directors are also satisfi ed 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 signifi cant environmental incidents are reported to the Board.
The Directors are not aware of any breaches of any environmental legislation or of any signifi cant environmental incidents during the year
which are material in nature.
Indemnities and Insurance
Under the Qantas Constitution, Qantas indemnifi es, to the extent permitted by law, each Director and Secretary of Qantas against any liability
incurred by that person as an offi cer of Qantas.
The Directors listed on pages 42 to 45 and the Secretary of Qantas, being Cassandra Hamlin, have the benefi t of the indemnity in the Qantas
Constitution. Members of the Qantas Executive Team listed on page 45 have the benefi t 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 benefi t 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 2007/08 or to the date of this Report.
Qantas has insured against amounts which it may be liable to pay on behalf of Directors and Offi cers or which it otherwise agrees to pay by way
of indemnity.
During the year, Qantas paid a premium for Directors’ and Offi cers’ liability insurance policies, which cover all Directors and Offi cers 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 Offi cers’ insurance
policies are not disclosed, as such disclosure is prohibited under the terms of the contracts.
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