Qantas 2012 Annual Report Download - page 49

FOR THE YEAR ENDED 30 JUNE 2012
Directors’ Report continued
3 EXECUTIVE REMUNERATION FRAMEWORK
The Executive Remuneration Framework as it applies to the CEO and the Executive Committee 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)
The “at target” pay for the CEO and Executive KMP is set with reference to external benchmark market data including comparable roles
in other listed Australian companies and international airlines. The primary benchmark is a revenue based peer group of other S&P/ASX
companies. The Board believes this is the appropriate benchmark, as it is the comparator group whose roles best mirror the complexity
and challenges in managing Qantas’ businesses and is also the peer group with whom Qantas competes for Executive talent.
4 REMUNERATION DECISIONS AND OUTCOMES FOR THE YEAR ENDED 30 JUNE 2012
The remuneration decisions and outcomes at Qantas are clearly linked to Qantas’ performance via the STIP and LTIP performance measures.
The CEO declined his award under the 2011/12 STIP, and no award was made. For other Executives, the 2011/12 STIP outcomes were
well below target and significantly lower than the 2010/2011 outcomes. Results under the 2011/12 STIP are detailed on page 53.
LTIP awards did not vest during 2011/2012. The 2010-2012 LTIP was tested as at 30 June 2012. As performance hurdles were not
achieved, all Rights under this plan lapsed and Executives did not receive any shares or payment under this plan. Therefore,
the remuneration outcome for 2011/2012 under the LTIP was nil. The LTIP is detailed on pages 54 to 56.
The following table summarises the remuneration decisions and outcomes for the CEO and Executive KMP for the year ended 30 June 2012.
The remuneration detailed in this table is aligned to the current performance periods and therefore is particularly useful in assessing
current year pay and its alignment with current year performance.
Non-statutory Table – CEO and Executive KMP
1
STIP Outcomes3
LTIP
Outcomes4
$’000
Base Pay
– Cash FAR2Cash Bonus
Deferred
Award
Rights
Vested Sub-total
Other
Benefits5
Termination
Payments Total
Alan Joyce
Chief Executive Officer
 , – – – ,  – ,
 , – , – ,  – ,
Gareth Evans
Chief Financial Officer
  –  – ,  – ,
  –  – ,  – ,
Bruce Buchanan
CEO Jetstar
  –  – , () – 
  –  – ,  – ,
Rob Gurney
Group Executive Qantas
Airlines Commercial
   – –    ,
  –  – ,  – ,
Simon Hickey
CEO Qantas Loyalty
  –  –   – ,
  –  – ,  – ,
Jayne Hrdlicka6
Group Executive Strategy
& Technology
  –  –   – ,
  –  –   – 
Lyell Strambi
Group Executive Qantas
Airlines Operations
  –  – ,  – ,
  –  – ,  – ,
Total  ,   – ,   ,
 , – , – ,  – ,
1 Detail of non-statutory remuneration methodology is explained on page 60.
2 Base pay, paid to each Executive during the year.
3 The full value of STIP awards made to each Executive during each of the 2011/2012 and 2010/2011 financial years. In both these years the Board deferred the payment
of bonuses under the STIP.
4 LTIP awards did not vest in either 2011/2012 or 2010/2011, therefore nil value shown.
5 Other Benefits include non-cash benefits, annual leave accrual, post-employment benefits and other long-term benefit.
6 2010/2011 remuneration for Ms Hrdlicka reflects the period of time in a key management role (1 February 2011 to 30 June 2011).
Refer to section 6 of the Remuneration Report on pages 50 to 58 for detail of the Executive Remuneration Structure, a description
of FAR, STIP and LTIP and analysis of the 2011/2012 outcomes for the STIP and LTIP.
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