Qantas 2012 Annual Report Download - page 59

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FOR THE YEAR ENDED 30 JUNE 2012
Directors’ Report continued
Summary of Key Contract Terms as at 30 June 2012
Contract Details Alan Joyce Gareth Evans Bruce Buchanan1Rob Gurney1Simon Hickey Jayne Hrdlicka Lyell Strambi
FAR $2,125,000 $925,000 $865,000 $840,000 $800,000 $775,000 $925,000
STIP “at target”
Opportunity
120% of FAR 80% of FAR 80% of FAR 80% of FAR 80% of FAR 80% of FAR 80% of FAR
LTIP “at target”
Opportunity
80% of FAR 50% of FAR 50% of FAR 50% of FAR 25% of FAR 25% of FAR 50% of FAR
Travel Entitlements An annual benefit of trips for these Executives and eligible beneficiaries during employment, at no cost
to the individual, as follows:
4 International 2 International 2 International 2 International 2 International 2 International 2 International
12 Domestic 6 Domestic 6 Domestic 6 Domestic 6 Domestic 6 Domestic 6 Domestic
The same benefit is provided for use post employment, based on the period of service in a senior Executive
role within the Qantas Group.
Notice by Qantas 12 months 12 months212 months 12 months 12 months 12 months212 months
Notice by Executive 12 months 6 months 6 months 6 months 6 months 6 months 6 months
1 In May 2012 a restructure of the Executive team was announced. As a consequence of the revised structure, Rob Gurney ceased employment with the Qantas Group on
30 June 2012. Mr Buchanan will also leave the Qantas Group – it is currently proposed that he will remain at Jetstar until 31 January 2013 to assist with the transition of his
responsibilities to Ms Hrdlicka.
2 For Mr Evans and Ms Hrdlicka, notice by Qantas of 12 months is made up of six months’ written notice plus six months’ severance pay.
Remuneration Mix
The FAR and “at target” STIP and LTIP opportunities for each Executive are set with reference to external benchmark market data
including comparable roles in other listed Australian companies and international airlines.
The “at target” STIP opportunity is set at 120 per cent of FAR for Mr Joyce and 80 per cent of FAR for Executive KMP.
The “at target” LTIP award is valued at 80 per cent of FAR for Mr Joyce, with Shareholder approval sought each year prior to making
the award. The annual “at target” LTIP award for the four largest KMP roles (being Mr Evans, Mr Buchanan, Mr Gurney and Mr
Strambi) is valued at 50 per cent of FAR. The annual “at target” LTIP award for other KMP roles is valued at 25 per cent of FAR.
At Qantas, the “at target” STIP and LTIP awards are normally expressed as a percentage of FAR, however, for the purpose of the
following remuneration mix tables FAR, STIP and LTIP opportunities are expressed as a percentage of total pay.
The target remuneration mix does not match the actual remuneration mix for 2011/2012, as:
— No cash-based incentives were paid in 2010/2011 or 2011/2012 for continuing Executives
— An increased level of share-based awards against the target mix reflecting the decision to award restricted shares instead
of cash bonuses in both years
— Actual reward mix is calculated on an accrual basis in accordance with accounting standards, so each year’s remuneration
includes a portion of the value of share-based payments awarded in previous years
Target Remuneration Mix
FAR
%
STIP
%
LTIP
%
Alan Joyce   
Gareth Evans   
Bruce Buchanan   
Rob Gurney   
Simon Hickey   
Jayne Hrdlicka   
Lyell Strambi   
Remuneration Report (Audited) continued
057