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50
QANTAS ANNUAL REPORT 2014
DIRECTORS’ REPORT CONTINUED
FOR THE YEAR ENDED 30 JUNE 2014
REMUNERATION REPORT (AUDITED) CONTINUED
These differences arise due to the accounting treatment of share-based payments (such as the STIP and LTIP). The statutory
disclosures include an accounting remuneration value for:
–Prior years’ STIP awards
Accounting standards require STIP remuneration to be expensed (and therefore included as statutory remuneration) in financial
years which differ from the year of scorecard performance. This creates a disconnect between reported remuneration and the
corresponding years’ financial and non-financial scorecard performance.
Despite no awards being made under the 2013/14 STIP, a value for STIP awards is still required to be included in the statutory
remuneration table. This is due to the fact that deferred shares granted under the 2011/12 STIP and 2012/13 STIP have a future
service period, during which the recipient must remain employed by the Group for the awards to vest. The 2013/2014 statutory
remuneration table includes a value for part of those prior year STIP awards.
–LTIP awards that have not vested
Accounting standards require LTIP remuneration to be expensed (and therefore included as statutory remuneration)
notwithstanding that the Rights have not met the performance hurdles and have lapsed.
No LTIP awards vested during 2013/2014, however, an accounting value is still required by accounting standards to be included
in the statutory remuneration table. Additionally, LTIP awards that will be assessed for vesting in future years are expensed over
the three year testing period. Therefore, the statutory disclosures include an accounting value for part of the 2013–2015 and the
2014–2016 LTIP awards, even though no LTIP awards vested during 2013/2014.
Statutory Table – CEO and Executive KMP
Incentive Plan – Accounting Accrual
Other Benefits
Share-based Payments
Accounting Accrual3
$’000s
Base Pay
(Cash)1,2
STIP Cash
Bonus1STIP LTIP Sub-total
Non-cash
Benefits1,4
Post-
employment
Benefits
5
Other
Long-
term
Benefits6Sub-total Total
Alan Joyce 2014 2,054 – 155 1,808 4,017 38 64 (147) (45) 3,972
Chief Executive Officer 2013 2,109 775 375 1,794 5,053 24 55 (20) 59 5,112
Gareth Evans 2014 981 – 76 520 1,577 41 42 (14) 69 1,646
Chief Financial Officer 2013 981 233 335 366 1,915 36 38 22 96 2,011
Lesley Grant 2014 782 – 54 210 1,046 841 (33) 16 1,062
CEO Qantas Loyalty 2013 785 178 228 162 1,353 33 34 (16) 51 1,404
Simon Hickey 2014 982 – 66 441 1,489 32 41 (107) (34) 1,455
CEO Qantas International 2013 984 213 284 280 1,761 16 35 117 168 1,929
Jayne Hrdlicka 2014 982 – 60 439 1,481 841 12 61 1,542
CEO Jetstar 2013 984 213 237 224 1,658 43 35 (15) 63 1,721
Lyell Strambi 2014 982 – 72 520 1,574 50 41 495 1,669
CEO Qantas Domestic 2013 984 223 323 366 1,896 63 35 14 112 2,008
Total 2014 6,763 – 483 3,938 11,18 4 177 270 (285) 162 11,346
2013 6,827 1,835 1,782 3,192 13,636 215 232 102 549 14,185
1 Short-term employee benefits include Base Pay (cash), non-cash benefits and STIP cash bonus.
2 Base Pay (cash) for Mr Joyce is Base Pay of $2,125,000 (2013: $2,125,000) less Base Pay foregone of $53,125 less superannuation contributions of $17,775 (2013: $16,470).
3 A breakdown of Share-based Payments is provided on page 61.
4 Non-cash Benefits include the value of travel benefits whilst employed and other minor benefits.
5 Post-employment Benefits include superannuation and an accrual for post-employment travel of $46,618 for Mr Joyce and $22,809 for each other Executive (2013: $38,714 for Mr Joyce
and $18,857 for each other Executive).
6 Other Long-term Benefits include movement in annual leave and long service leave balances. The accounting value of other long-term benefits may be negative, for example where an
Executive’s annual leave balance decreases as a result of taking more than the 20 days annual leave they accrued during the year.
6) EXECUTIVE REMUNERATION STRUCTURE
Base Pay What is Base Pay?
Base Pay is a guaranteed salary level, inclusive of superannuation. Each year, the Remuneration Committee
reviews the Base Pay for the CEO and direct reports to Executive Management. An individual’s Base Pay, being
aguaranteed salary level, is not related to Qantas’ performance in a specific year.
Base Pay (cash), as disclosed in the remuneration tables, excludes superannuation (which is disclosed as
Post-employment Benefits) and includes salary sacrifice components such as motor vehicles.