Qantas 2013 Annual Report Download - page 91

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QANTAS ANNUAL REPORT 2013
Other Benets Non-cash benets
Non-cash benets, as disclosed in the remuneration tables, include travel entitlements while employed and
other benets.
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 specied direct family members or parties.
In addition to this and consistent with practice in the airline industry, Directors and KMP and their eligible
beneciaries 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 KMP and their eligible beneciaries are also 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 benet.
Superannuation
Superannuation includes statutory and salary sacrice superannuation contributions and is disclosed as
a post-employment benet.
Other long-term benets
The accrual of long service leave is included in other long-term benets.
Summary of Key Contract Terms as at 30 June 2013
Contract Details Alan Joyce Gareth Evans Lesley Grant Simon Hickey Jayne Hrdlicka Lyell Strambi
FAR $2,125,000 $1,000,000 $800,000 $1,000,000 $1,000,000 $1,000,000
STIP “at target”
opportunity
120% 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 25% of FAR 50% of FAR 50% of FAR 50% of FAR
Travel
entitlements
An annual benet of trips for these Executives and eligible beneciaries during employment, at no cost to the
individual, as follows:
4 Long Haul 2 Long Haul 2 Long Haul 2 Long Haul 2 Long Haul 2 Long Haul
12 Short Haul 6 Short Haul 6 Short Haul 6 Short Haul 6 Short Haul 6 Short Haul
The same benet is provided for use post-employment, based on the period of service in a senior Executive role
within the Qantas Group.
Notice Employment may be terminated by either the Executive or Qantas by providing six months written notice1.
Each Executive’s contract now includes a provision that limits any termination payment to the statutory limit
prescribed under the Corporations Act 2001.
Severance A severance payment of six months’ FAR applies where termination is initiated by Qantas1.
1 Other than for misconduct or unsatisfactory performance.
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 Hickey, Ms Hrdlicka and Mr Strambi)
is valued at 50 per cent of FAR. The annual “at target” LTIP award for other Executive Management roles, (including for Ms Grant) 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 2012/2013, as:
»2012/13 STIP outcomes were below the “at target” award levels, and
»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