Qantas 2014 Annual Report Download - page 61

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QANTAS ANNUAL REPORT 2014
7) PERFORMANCE RELATED REMUNERATION
STIP awards – Vesting and Forfeiture
One-third of the 2010/11 STIP awards (granted on 31 August 2011) were delivered to participants in deferred shares that are subject
to a two-year restriction period. The restriction period on these shares ended during 2013/2014.
One-third of the 2011/12 STIP awards (granted on 22 August 2012) were delivered to participants in deferred shares that are subject
to a two-year restriction period. The restriction period on these shares applied throughout 2013/2014.
One-third of the 2012/13 STIP awards (granted on 6 September 2013) were delivered to participants in deferred shares that are
subject to a two-year restriction period. The restriction period on these shares applied throughout 2013/2014.
Number of Rights Granted, Vested, Lapsed and Forfeited in 2013/2014
Awards of Rights under the LTIP may vest and convert to Qantas shares subject to the achievement of long-term performance
hurdles as described on pages 55 to 56. Any Rights that do not achieve the performance hurdles will lapse.
The following table summarises the Rights granted, vested and lapsed/forfeited in 2013/2014.
Number of rights
Executives Granted Vested
Lapsed/
Forfeited
Alan Joyce 2,151,000 –(1,084,000)
Gareth Evans 633,000 –(119,000)
Lesley Grant 253,000 –(72,000)
Simon Hickey 633,000 –(104,000)
Jayne Hrdlicka 633,000 – –
Lyell Strambi 633,000 –(119,000)
The Rights granted during the year (on 18 October 2013) were under the 2014–2016 LTIP, which will be tested against the performance
hurdles as at 30 June 2016. The fair value of a Right on the grant date was $0.83 per Right.
100 per cent of Rights under the 2011–2013 LTIP as disclosed in the table above lapsed during the year, following the testing of
performance hurdles as at 30 June 2013. The fair value of a Right on the grant date was $1.76 for Mr Joyce and $1.50 for other Executives.
There was nil vesting and nil forfeiture under the 2012–2014 LTIP (granted on 23 August 2011 and 28 October 2011) and the 2013–2015
LTIP (granted on 2 November 2012). 100 per cent of Rights under the 2012–2014 LTIP lapsed subsequent to 30 June 2014 following the
testing of performance hurdles as at 30 June 2014.
Performance Remuneration Affecting Future Periods
The fair value of share-based payments granted is amortised over the service period and therefore remuneration in respect of these
awards may be reported in future years. The following table summarises the maximum value of these awards that will be reported in
the statutory remuneration tables in future years, assuming all performance conditions are met. The minimum value of these awards
is nil, should performance conditions not be satisfied.
Future Expense by Plan Future Expense by Financial Year
STIP Awards LTIP Awards
Executives
2011/12
$’000
2012/13
$’000
2013 – 20151
$’000
2014 – 20162
$’000
Total
$’000
2015
$’000
2016
$’000
Total
$’000
Alan Joyce –143 850 1,339 2,332 1,642 690 2,332
Gareth Evans 543 250 394 692 489 203 692
Lesley Grant 333 100 157 293 210 83 293
Simon Hickey 439 250 394 687 484 203 687
Jayne Hrdlicka 439 250 394 687 484 203 687
Lyell Strambi 441 250 394 689 486 203 689
1 The number of Rights granted under the 2013-2015 LTIP on 2 November 2012 were determined using the fair value of a Right on 1 July 2012 ($0.66 per Right) being the start of the
measurement period. For accounting purposes, accounting standards require the share-based payment expense to be calculated using the fair value of a Right on the grant date
($0.88 per Right).
2 The number of Rights granted under the 2014-2016 LTIP on 18 October 2013 were determined using the fair value of a Right on 1 July 2013 ($0.79 per Right) being the start of the
measurement period. For accounting purposes, accounting standards require the share-based payment expense to be calculated using the fair value of a Right on the grant date
($0.83 per Right).