Originally Posted by
busdriver007
The Airline HAS NOT BEEN TRANSFORMED and whoever comes next faces a huge hurdle of Capex. Maybe it is time to short the QF stock! .
The problem is AJ still has capital to burn the shorts through buy backs. Executive renumeration is now tied to ASX & global peer
relative return performance, thus the buy backs will continue to ensure the hurdles are exceeded, at the expense of CAPEX no matter the long term damage to the business.
From the
Qantas Annual Report 2017 , pages 39 & 40
The performance measures for each of the 2015–2017 LTIP (tested at 30 June 2017), 2016–2018 LTIP (to be tested as at 30 June 2018) and 2017–2019 LTIP (to be tested as at 30 June 2019) are: —The relative TSR of Qantas compared to companies with ordinary shares included in the ASX100 —The relative TSR of Qantas compared to Global Listed Airlines These Rights will only vest in full if Qantas’ TSR performance ranks at or above the 75th percentile compared to both the ASX100 and the Global Listed Airlines peer groups. At the end of the performance period, the TSR performance of Qantas and each comparator company will be determined based on the average closing shares price over the final 6 months of the performance period. Qantas’ Financial Framework also targets top quartile TSR performance relative to ASX100 companies and global airline peers and therefore relative TSR performance against these peer groups has been chosen as the performance measure for the LTIP. The peer groups selected provide a comparison of relative shareholder returns relevant to most Qantas investors: —The ASX100 peer group was chosen for relevance to investors with a primary interest in the equity market for major Australian listed companies, of which Qantas is one —The Global Listed Airlines peer group was chosen for relevance to investors, including investors based outside Australia, whose focus is on the aviation industry sector and measuring returns from listed companies impacted by comparable external factors
Up to 50% of the total number of Rights granted may vest based on the relative TSR performance of Qantas in comparison to the ASX100 and up to 50% of the total number of Rights granted may vest based on the relative TSR performance of Qantas in comparison to the Global Listed Airlines peer group. The vesting scale for both the ASX100 and the Global Listed Airlines peer groups is as follows: Qantas TSR Performance Relative to Each Peer Group Vesting Scale Below 50th percentile Nil vesting Between 50th and 75th percentile Linear scale: 50% to 99% vesting At or above 75th percentile 100% vesting The ASX100 peer group comprises those companies that make up the S&P/ASX100 Index at the commencement of the performance period. The Global Listed Airlines peer group has been selected with regard to its representation of Qantas’ key markets, full-service and value-based airlines and the level of government involvement. For the 2015–2017 LTIP, the Global Listed Airlines peer group includes: Air Asia, Air France/KLM, Air New Zealand, All Nippon Airways, International Consolidated Airlines Group, Cathay Pacific, Delta Airlines, easyJet, Japan Airlines, LATAM Airlines Group, Deutsche Lufthansa, Ryanair, Singapore Airlines, Southwest Airlines, Tiger Airways and Virgin Australia. The 2016– 2018 LTIP and 2017–2019 LTIP also include American Airlines and United Continental. Tiger Airways was excluded from the 2017–2019 LTIP
ASX short report (updated daily)
QANTAS AIRWAYS ORDINARY QAN 5,959,936 1,729,665,867 0.34 [% short]
This is not [yet] time to short!