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52
QANTAS ANNUAL REPORT 2014
DIRECTORS’ REPORT CONTINUED
FOR THE YEAR ENDED 30 JUNE 2014
Annual
Incentive
Also referred
to as the Short
Term Incentive
Plan or STIP
(continued)
What were the STIP measures for the year ended 30 June 2014?
Scorecard Category /
Strategic Objective Strategic Objective Measures
Scorecard
Weighting Comment
Group
Financial
Measures
Delivering
sustainable returns
to shareholders
–Underlying PBT
–Operating Cash Flow
to Net Debt
50%
10%
The STIP scorecard is heavily
weighted to financial performance.
Underlying PBT is the key
budgetary and financial
performance measure for the
Qantas Group and therefore
it is selected as the primary
performance measure under the
STIP scorecard.
50 per cent of the total STIP
scorecard is determined based
on Underlying PBTperformance.
People and
Operational
Safety
Safety is always our
first priority
–People safety
measures
–Operational safety
10% As safety is always our first
priority, the STIP scorecard
includes an assessment of both
operational and people safety.
In addition, the Board retains
discretion to modify the total
STIP scorecard outcome to
reflect the Group’s overall safety
performance.
Domestic
Businesses
(Qantas
Domestic
and Jetstar
Australia
Domestic)
and the
Transformation
Agenda
Profitably build on
the dual domestic
brands
Driving operational
efficiency in all
businesses
–Unit cost
–Punctuality
–Net Promoter Score
(NPS)
–Domestic network
and frequency
advantage
–Milestones around
key transformation
initiatives
10%
To support these strategic
objectives, STIP targets were
set across financial, operational
and customer measures for
both the Qantas and Jetstar
domestic businesses as well as
milestone targets for key business
transformation initiatives.
Qantas
International
and Qantas
Loyalty
Strengthen Qantas
International
and build leading
partnerships
Deepen Qantas
Frequent Flyer
Program customer
and partner
engagement, whilst
supporting multiple
brands
Leverage existing
customer
relationships in new
businesses
–Unit cost
–NPS
–Strengthening
network and
alliances
–Qantas Frequent
Flyer membership
numbers
–Qantas Loyalty new
revenue initiatives
10%
To support these strategic
objectives, STIP targets were set
across the following areas:
–Financial, operational and
customer measures in the
Qantas International and Qantas
Loyalty businesses
–Building a stronger network
and airline partnerships
–Developing new opportunities
in Qantas Loyalty
Jetstar in Asia Positioning Jetstar
for success in Asia
–Unit cost
–Underlying EBIT
–NPS
–Key business
milestones
10% To support this strategic initiative,
STIP targets were set across key
measures of financial, operational
and customer performance in
the Asian-based Jetstar branded
airlines as well as milestones
in further developing these
businesses.
Total 100%
REMUNERATION REPORT (AUDITED) CONTINUED