Qantas 2012 Annual Report Download - page 44

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FOR THE YEAR ENDED 30 JUNE 2012
Directors’ Report continued
Cover letter to the Remuneration Report
Dear Shareholder,
Qantas is pleased to present its Remuneration Report for 2011/2012, which sets out remuneration information
for Non-Executive Directors, the Chief Executive Officer (CEO) and Executive Committee.
This year we have added a brief introduction to the Remuneration Report. This introduction provides a summary
of the Executive Remuneration Framework at Qantas.
As the Remuneration Report discussion regularly focuses on the CEO’s pay, the introduction also summarises remuneration
for the CEO in 2011/2012. It outlines the remuneration decisions as they relate to the CEO and highlights the clear link between
the CEO’s pay outcomes and Qantas’ performance. Details of the CEO’s remuneration for 2011/2012 include:
— Based on performance against the measures under the annual incentive, Mr Joyce was entitled to an award of $792,000,
however, Mr Joyce declined this award, and no award was made
— The three-year company performance measures tested as at 30 June 2012 for the long term incentive plan were not met
and therefore rights lapsed and no shares were awarded
— Mr Joyce also chose not to participate in the 2012 base pay review and his base pay will remain unchanged in 2012/2013
There was no increase to Board or Committee fees paid to Non-Executive Directors in 2011/2012 and there will be no increase
to these fees for 2012/2013.
This has been an extremely challenging year for Qantas and for Qantas’ shareholders. The impact of industrial action,
our significant transformation agenda, fuel prices and the unstable European economy is evidenced in our financial results.
This is also reflected in the pay outcomes for the CEO and the Executive team.
As Chairman of our Remuneration Committee, I will continue to review the Qantas Remuneration Framework to ensure it meets
the requirements of our shareholders while also motivating and rewarding our employees.
James Strong
Chairman, Remuneration Committee
Remuneration Report (Audited)
INTRODUCTION
OVERVIEW OF THE EXECUTIVE REMUNERATION FRAMEWORK
The objectives of the Executive Remuneration Framework are to attract, motivate, retain and appropriately reward a capable
Executive team. This is achieved by setting pay at an appropriate level and by linking remuneration outcomes to Qantas’ performance.
The Qantas Executive Remuneration Framework contains three elements:
—Base pay - referred to as Fixed Annual Remuneration (FAR)
—An annual incentive - referred to as the Short Term Incentive Plan (STIP)
—A long term incentive - referred to as the Long Term Incentive Plan (LTIP)
During 2011/2012, the Remuneration Committee reviewed each element of the Remuneration Framework and elected to retain
the overall structure of the Framework.
QANTAS ANNUAL REPORT 2012042