Qantas 2013 Annual Report Download - page 78
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Directors’ Report continued
FOR THE YEAR ENDED 30 JUNE 2013
REMUNERATION REPORT AUDITED
Cover letter to the Remuneration Report
Dear Shareholder,
Qantas is pleased to present its Remuneration Report for 2012/2013. This report sets out remuneration information for
Non-Executive Directors, the Chief Executive Ofcer (CEO) and Executive Management.
In considering this year’s remuneration outcomes, the Board Remuneration Committee has balanced Qantas’ under-performance
to nancial targets with over-achievement on the transformational agenda. The Committee is particularly concerned that our
remuneration framework encourages our executive team to make decisions that ensure the sustainability and viability of Qantas,
and create long-term intrinsic value for shareholders and all stakeholders.
Key outcomes of our deliberations are as follows:
»The CEO received no increase in base pay during 2012/2013, and his base pay will again remain unchanged in 2013/2014
»There were a number of changes to the base pay of the Executive Management team as a result of the re-organisation
of Qantas Airlines into separate international and domestic businesses. The changes that were made to the remuneration
of theExecutive Management team reect their increased responsibilities
»A general freeze on Executive Management pay will apply for 2013/2014
»Directors’ fees remained unchanged in 2012/2013, and have only increased a total of three per cent since 1 July 2008
»Short Term Incentive Plan awards at 38 per cent of the “at target“ level will be paid to our Executive Management team.
Thisbalanced scorecard outcome reects no contribution against the group nancial targets however it does reect the
signicant progress made during 2012/2013 on our group strategy and transformation agenda
»Long Term Incentive Plan performance conditions were tested as at 30 June 2013 and were not met. Therefore, the Rights
lapsed and no shares were awarded
The Remuneration Report focuses on the remuneration decisions made by the Board and the pay outcomes that resulted.
Weencourage our shareholders to use the Remuneration Outcomes table as a tool to assess the pay outcomes for executives
in 2012/2013 and the alignment of these outcomes with Qantas’ performance.
We also explain the differences between the Actual Remuneration Outcomes and the Statutory Remuneration data. The key
difference between these two tables is the value included in the Statutory Remuneration table for potential future outcomes
under the long term incentive. A value is required to be included in the Statutory Remuneration table to account for long term
incentives that may or may not vest in the future. This report details the committee’s work to reconcile actual pay outcomes with
Qantas’ performance and long-term value creation.
The Board is satised that these remuneration outcomes for 2012/2013 are appropriately performance-based while recognising
the strategic needs of Qantas. We commend this report to you and welcome your suggestions for further improvements
in future reports.
Patricia Cross
Chairman, Remuneration Committee