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77 Qantas Annual Report 2009
Directors’ Report
for the year ended 30 June 2009
CHANGES TO QANTAS MANAGEMENT TEAM
2008/09 was a year of generational change in the Qantas management team, with the new leadership team comprising a mix of internal promotions and
external hires. Mr Dixon stepped down as Chief Executive Officer on 28 November 2008 and retired from Qantas on 31 March 2009.
Mr Dixon worked nine months of the 12 months notice provided for under his employment agreement. On termination the remaining three months of
FAR was paid in lieu of notice.
Unvested Performance Rights awards (under the 2006 and 2007 Performance Rights Plans) were treated in accordance with his employment agreement.
This involved the lapsing of 150,000 Rights on termination and 450,000 Rights remaining on foot, with performance hurdles tested at the conclusion of
the relevant three year performance periods. The holding locks on all deferred shares were lifted on termination, in accordance with the retirement provisions
of the DSP.
Mr Gregg, Mr Borghetti and Mr Brown all terminated employment with Qantas during 2008/09 and Mr Cox terminated on 3 July 2009. Termination
payments made to each Executive are disclosed in the remuneration tables on pages 74 and 75. The treatment of these items is as follows:
•eachExecutivewaspaidinaccordancewiththeterminationprovisionsoftheiremploymentagreement(andasdetailedundertheKeyContractTerms
disclosures in the 2008 Qantas Annual Report);
•holdinglocksonalldeferredshareswereliftedontermination,inaccordancewiththeSpecialCircumstancesprovisionsoftheDSP;and
•unvestedPerformanceRightswerelapsedontermination.
Mr Fenn has resigned from Qantas and will terminate on 1 October 2009. On termination, all unvested awards under the Performance Rights Plan,
Performance Share Plan and Retention Plan will lapse, other than 77,500 shares under the Retention Plan which are scheduled to vest during the notice
period.
2008/09 REMUNERATION COMPONENTS AS A PROPORTION OF REPORTED TOTAL REMUNERATION
FAR
Performance Related Remuneration & Other Total
Cash-based Equity-based
PCP PSP LTIP RP
Alan Joyce 0% 8% 2% 24% 66% 100%
Colin Storrie 0% 9% 2% 25% 64% 100%
Geoff Dixon 0% 13% 3% 14% 70% 100%
Peter Gregg 0% 9% (6%) 31% 66% 100%
Bruce Buchanan 0% 8% 1% n/a 91% 100%
Rob Gurney 0% 12% 2% n/a 86% 100%
Simon Hickey 0% 11% 3% 26% 60% 100%
Lyell Strambi 0% 3% 1% n/a 96% 100%
John Borghetti 0% 9% (5%) 25% 71% 100%
KevinBrown 0% 7% (4%) 32% 65% 100%
David Cox 0% 6% 0% 37% 57% 100%
Curtis Davies 0% 7% (1%) 32% 62% 100%
Grant Fenn 0% 8% 0% 22% 70% 100%
The total percentages are derived from the remuneration tables on pages 74 to 76. 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 2008/09 reward mix does not equal the target annual reward mix of
each of the Executives.
Remuneration Report (Audited) continued