A.Very.Good.Year at Qantas Airways

Qantas Airways released its 2016 annual report this afternoon. How has its record underlying results have translated into short term incentive awards for its MD/CEO? With a STIP cash bonus of $3.264 million ($1.904 million in FY2015) plus a restricted shares grant of $1.632 million ($952,000 in FY2015), the outcome reflects above target achievements in four of the five scorecard areas, plus a 'target' achievement in the area of people and operational safety...multiplied by his individual performance factor. With underlying profit before tax worth 50% of the STIP award, Alan Joyce' STIP award was more than 190% of his target STIP of 120% of base pay or $2.55 million. It was also a good year for the long term incentives which vested at 100%: 2,151,000 rights multiplied by the CSP on 26 August 2016 of $3.36 = $7,205,850. Add to this the deferred STIP from earlier years which vested on 21 August 2015 - $1,045,102, plus his base pay of $2.106 million...and it's a very good year. Qantas' 2016 AGM is on 21 October 2016.