Qantas 2012 Annual Report Download - page 58

Download and view the complete annual report

Please find page 58 of the 2012 Qantas annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 156

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156

FOR THE YEAR ENDED 30 JUNE 2012
Directors’ Report continued
Long Term
Incentive Plan
also referred
to as the LTIP
(continued)
What are the performance hurdles for other LTIP awards made in earlier years?
The performance hurdles for the 2010-2012 LTIP award were:
— The relative TSR of Qantas compared to the S&P/ASX100 Index, using the same vesting scale detailed
on page 55 and
— An EPS target, using the vesting scale detailed below
One-half of the total number of LTIP Rights awarded under the 2010-2012 LTIP were tested against the following scale:
EPS Performance (for the year ended 30 June 2012) Vesting Scale
EPS Result below threshold of $. Nil vesting
EPS Result below threshold of $. and stretch target of $. Linear scale: % to % vesting
EPS Result at or above stretch target of $0.404 100% vesting
What was the LTIP outcome for the year ended 30 June 2012?
LTIP awards under the 2010-2012 LTIP were tested as at 30 June 2012 and the performance hurdles were not achieved.
Therefore, 2010-2012 LTIP Rights did not vest and all Rights lapsed.
How are LTIP Rights treated if a change of control occurs?
In the event of a change of control, and to the extent that Rights have not already lapsed, the Board determines
whether the LTIP Rights vest or otherwise.
What happens if companies in the comparator groups de-list?
Companies that de-list due to business failure are assigned a TSR of minus 100 per cent fairly representing
the negative outcome for shareholders in those companies. Comparator companies that are acquired and
the continuing entity is a listed company (for which TSR is available) will have their TSR measured to the date
of acquisition and then it is assumed the proceeds are re-invested in the continuing listed entity. This approach
also ensures that shareholder outcomes are fairly reflected in the LTIP results.
Other Benefits Non-cash benefits
Non-cash benefits, as disclosed in the remuneration tables, include travel entitlements while employed
and other benefits.
Travel
Travel concessions are provided to permanent Qantas employees, consistent with practice in the airline
industry. Travel at concessionary prices is on a sub-load basis, i.e. subject to considerable restrictions and
limits on availability. It includes specified direct family members or parties.
In addition to this and consistent with practice in the airline industry, Directors and KMP and their eligible
beneficiaries are entitled to a number of trips for personal purposes at no cost to the individual.
Post-employment travel concessions are also available to all permanent Qantas employees who qualify
through retirement or redundancy. The CEO and Executive KMP and their eligible beneficiaries are entitled
to a number of free trips for personal purposes. An estimated present value of these entitlements is accrued
over the service period of the individual and is disclosed as a post-employment benefit.
Superannuation
Superannuation includes statutory and salary sacrifice superannuation contributions and the expense
to the company of defined benefit superannuation entitlements. Superannuation is disclosed as a
post-employment benefit.
Other long-term benefits
The accrual of long service leave is included in other long-term benefits.
Remuneration Report (Audited) continued
QANTAS ANNUAL REPORT 2012056