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41 ANNUAL REPORT 2010
for the year ended 30 June 2010
6) ADDITIONAL INFORMATION
This section provides additional information on the remuneration framework, as it applies to members of the Executive Committee and their
remuneration in 2009/2010.
STIP – Additional Information
Example Performance
Scorecard PBT Target The PBT target is set based on the annual  nancial budget, however for reasons
of commercial sensitivity the annual target is not disclosed.
The target is adjusted for restructuring charges, the impact of approved
accounting policy changes and adjustments for volatility from the mark-to-
market of open hedge instruments under Accounting Standard AASB 139
Financial Instruments: Recognition and Measurement.
Customer Service Qantas performance in Skytrax World Airline Awards.
Skytrax is a global, independent passenger survey of airline standards.
In the 2010 survey, Qantas ranked seventh overall out of over 200 airlines rated
by Skytrax.
Operational / Punctuality Punctuality is measured against on-time departures and arrivals targets.
For Qantas Airlines and Jetstar Executives, the measure relevant to their
business unit is used.
For corporate Executives a combined  gure is used.
People / Safety The objective of the People/Safety target is to reduce Lost Time Injury and
Serious Injury rates of our employees.
The targets at a Group level involve reducing the Lost Time Injury Frequency
Rate by 24 per cent on the 2008/2009 result and reducing the Serious Injury
Frequency Rate by 19 per cent.
Unit Cost Reduction Unit cost remains an area of focus across the business and, as a result,
scorecards include a unit cost reduction performance measure. The unit cost
target is set based on the annual  nancial budget.
For example, for Qantas Airlines unit cost performance is calculated as Net
Expenditure divided by Group Available Seat Kilometres (ASKs). To ensure the
measure focuses on the underlying operating activities and ef ciencies, the
measure excludes the impact of fuel price changes and restructuring charges.
Calculating a
STIP award FAR x“at target”
opportunity xScorecard Result xIndividual Performance
Factor (IPF)
The individual
Executive’s FAR.
An individual’s target
reward under the STIP,
expressed as a
percentage of FAR.
Performance against
the scorecard
(expressed as a
percentage).
At the end of the year,
performance against
KPIs is assessed and
each Executive is
assigned an IPF based
on their performance.
Across all STIP
participants, IPFs
average to 1.0.
Remuneration Report (Audited) continued
Directors’ Report continued