Geoff Dixon's Gift
Thread Starter
Join Date: Jan 2005
Location: Where I'm not alarmed
Posts: 454
Likes: 0
Received 0 Likes
on
0 Posts
Geoff Dixon's Gift
After all of the criticism, can we at last have a kind word for Geoff Dixon? He is obviously not the complete bastard that he's painted as evidenced by his decision to set up a charitable trust.
What a shame other industrial and commercial multi millionaires don't follow his example instead of swanning around the world in their own private flying and floating gin palaces leading a life of decadence and by buying every conceivable toy to sate their appetite for so-called excitement and pleasure?
Three cheers for GD!!
What a shame other industrial and commercial multi millionaires don't follow his example instead of swanning around the world in their own private flying and floating gin palaces leading a life of decadence and by buying every conceivable toy to sate their appetite for so-called excitement and pleasure?
Three cheers for GD!!
STATEMENT BY GEOFF DIXON
CHIEF EXECUTIVE OFFICER, QANTAS AIRWAYS LIMITED
CHIEF EXECUTIVE OFFICER, QANTAS AIRWAYS LIMITED
The Private Consortium bidding for Qantas, Airline Partners Australia, has asked me to continue as Chief Executive Officer of Qantas and to take the Company forward with a similar management team to now. I have accepted this offer.
As I understand is the usual practice in private equity transactions, the senior executives of Qantas will hold an equity share in the Company of around 1%. Some of this equity will be the executives’ own money, with the majority being provided by the Consortium. The money is at risk and eventual rewards will depend on the performance of the Company.
My own remuneration will be in three parts. Firstly, a salary and a short-term, bonus scheme which will, I am told, be around the same as I currently receive.
Secondly I will invest some of my current Qantas share entitlements in a scheme which will provide returns similar to what I would have received with shares vested under my current contract.
Thirdly, the Consortium will invest for me in a Long-Term Incentive Scheme (LTIP), which will be performance and time based, and at risk.
As I said, the value of this LTIP will depend on how Qantas performs. If Qantas achieves a 15% annual return for five years it will be worth around $30 million, and at a 25% annual return it will be worth around $60 million.
I appreciate the confidence Airline Partners Australia have placed in me.
That said, my family and I have decided that I will gift my entire share of the LTIP to a charitable trust, which we will establish for the benefit of the community, particularly in the areas of medical research and indigenous health and education.
I have instructed my lawyer, Danny Gilbert, Managing Partner of Gilbert and Tobin, to establish a trust which may take the form of a Prescribed Private Fund under the Tax Act. I understand that it will take three to four months to obtain all the necessary approvals for the establishment of the Trust.
Finally, I would like to say that I advised the Board of Qantas on 1 December that, in the event of a sale being concluded, I intended to take this course of action
.
As I understand is the usual practice in private equity transactions, the senior executives of Qantas will hold an equity share in the Company of around 1%. Some of this equity will be the executives’ own money, with the majority being provided by the Consortium. The money is at risk and eventual rewards will depend on the performance of the Company.
My own remuneration will be in three parts. Firstly, a salary and a short-term, bonus scheme which will, I am told, be around the same as I currently receive.
Secondly I will invest some of my current Qantas share entitlements in a scheme which will provide returns similar to what I would have received with shares vested under my current contract.
Thirdly, the Consortium will invest for me in a Long-Term Incentive Scheme (LTIP), which will be performance and time based, and at risk.
As I said, the value of this LTIP will depend on how Qantas performs. If Qantas achieves a 15% annual return for five years it will be worth around $30 million, and at a 25% annual return it will be worth around $60 million.
I appreciate the confidence Airline Partners Australia have placed in me.
That said, my family and I have decided that I will gift my entire share of the LTIP to a charitable trust, which we will establish for the benefit of the community, particularly in the areas of medical research and indigenous health and education.
I have instructed my lawyer, Danny Gilbert, Managing Partner of Gilbert and Tobin, to establish a trust which may take the form of a Prescribed Private Fund under the Tax Act. I understand that it will take three to four months to obtain all the necessary approvals for the establishment of the Trust.
Finally, I would like to say that I advised the Board of Qantas on 1 December that, in the event of a sale being concluded, I intended to take this course of action
Join Date: Oct 2000
Location: Southern Sun
Posts: 417
Likes: 0
Received 0 Likes
on
0 Posts
`I have instructed my lawyer, Danny Gilbert, Managing Partner of Gilbert and Tobin, to establish a trust which may take the form of a Prescribed Private Fund under the Tax Act. I understand that it will take three to four months to obtain all the necessary approvals for the establishment of the Trust.'
All, as usual, not quite as it seems?
Could there be a hefty tax concession involved here?
DK
All, as usual, not quite as it seems?
Could there be a hefty tax concession involved here?
DK
Last edited by Dark Knight; 14th Dec 2006 at 23:59. Reason: spelling
Thread Starter
Join Date: Jan 2005
Location: Where I'm not alarmed
Posts: 454
Likes: 0
Received 0 Likes
on
0 Posts
Look on the bright side but maybe your monicker says it all.
And before the cynics ask, I do not have any connection with GD, just an ability to see some good for mankind as a result of his gift.
Again,
Registered User **
Join Date: May 2005
Location: The Ultimate Crew Rest....
Age: 69
Posts: 2,346
Likes: 0
Received 0 Likes
on
0 Posts
BALert,
Scourge of crew and defender of QF management.
Of course GD is right to set up a charitable trust and only a cynic would suggest that he is doing it so as to lower his taxable income.
…by the way BA where do you work ?
Oh I forgot,BA never tells anyone where he works…….
Scourge of crew and defender of QF management.
Of course GD is right to set up a charitable trust and only a cynic would suggest that he is doing it so as to lower his taxable income.
…by the way BA where do you work ?
Oh I forgot,BA never tells anyone where he works…….
Last edited by lowerlobe; 15th Dec 2006 at 00:56.
Join Date: Sep 2000
Location: Sydney, Australia
Posts: 108
Likes: 0
Received 0 Likes
on
0 Posts
YOu beat me to it, B A Lert - I was going to start the same thread.
Let's review the situation:
* Private equity buyers (who are at the very least sophisticated and financially aware investors) have decided that Dixon's management plan for QANTAS over the next 5 years is so good that it's worth them paying a 60% premium to the sharemarket price in order to get in on what they obviously think are huge potential returns. Looks like Geoff was right when he said that the market was substantially undervaluing the company!
* One of the conditions of the deal proceeding was said to be that Dixon and his senior management team stayed in place - obviously others don't have the same opinion of his management skills as would be gained from reading these forums.
* Despite the potential for massive personal gain, he eschews it in favour of philanthropic contributions to some of Australia's most needy causes.
So - could it possibly be? Perhaps he's actually a great airline manager AND a very generous human being???
I'm not holding my breath for others to agree with me I must say - but good on you Geoff!
SW
Let's review the situation:
* Private equity buyers (who are at the very least sophisticated and financially aware investors) have decided that Dixon's management plan for QANTAS over the next 5 years is so good that it's worth them paying a 60% premium to the sharemarket price in order to get in on what they obviously think are huge potential returns. Looks like Geoff was right when he said that the market was substantially undervaluing the company!
* One of the conditions of the deal proceeding was said to be that Dixon and his senior management team stayed in place - obviously others don't have the same opinion of his management skills as would be gained from reading these forums.
* Despite the potential for massive personal gain, he eschews it in favour of philanthropic contributions to some of Australia's most needy causes.
So - could it possibly be? Perhaps he's actually a great airline manager AND a very generous human being???
I'm not holding my breath for others to agree with me I must say - but good on you Geoff!
SW
Don Quixote Impersonator
Join Date: Jul 1999
Location: Australia
Age: 77
Posts: 3,403
Likes: 0
Received 0 Likes
on
0 Posts
Onya Geoff a truly selfless and munificent gesture however motivated.
Win lose or draw it is a very significant amount of money, so wind your necks in guys the only tax and concessional breaks will be for the benefit of the charitable trust they will not accrue to young Geoff.
The Tax Act provides for this to support said charitable efforts and because it is a concessional tax, against earned income, which is how the fund gets income to operate = for charitable purposes, they have a set of rules to stop people from taking personal advantage of them.
a very significant %age do, but do not have to and most choose not to advertise the fact as does Geoff as a result of his very public position and as part of his disclosure obligations.
Me! I don't work for or claim a friendship neeva, and I am really ambient about the way QF is going as an Australian icon in the same way its hard to describe the feeling of watching your ma in law driving your new Ferrari over a cliff.
I've been mulling over whether I want to renew my QF Club membership to senior life, but I think I might now.
Win lose or draw it is a very significant amount of money, so wind your necks in guys the only tax and concessional breaks will be for the benefit of the charitable trust they will not accrue to young Geoff.
The Tax Act provides for this to support said charitable efforts and because it is a concessional tax, against earned income, which is how the fund gets income to operate = for charitable purposes, they have a set of rules to stop people from taking personal advantage of them.
What a shame other industrial and commercial multi millionaires don't follow his example instead of swanning around the world in their own private flying and floating gin palaces leading a life of decadence and by buying every conceivable toy to sate their appetite for so-called excitement and pleasure?
Me! I don't work for or claim a friendship neeva, and I am really ambient about the way QF is going as an Australian icon in the same way its hard to describe the feeling of watching your ma in law driving your new Ferrari over a cliff.
I've been mulling over whether I want to renew my QF Club membership to senior life, but I think I might now.
Join Date: Dec 2002
Location: messemate way to bondi icebergs
Posts: 411
Likes: 0
Received 2 Likes
on
2 Posts
It is a very generous gift by Geoff and in doing so, does give him some credability. He must have some very good minders though... His perception to the public would be somewhat of a tyrant apart from being a shrewed buisnessman. The jury is still out...Perhaps if he donated some of that good will to some of his marginalised workers then perhaps he would have changed some of the poor morale at QF and maybe RE-ENGAGED his disengaged staff. But Geoff does set a good example to others CEO's. His PR team should ... and probably did get a pay rise
Nunc est bibendum
Bouqets and buckets
A very generous gift to the community no doubt. It does go some way to re-establishing my faith in the man although I'd be genuinely interested in Sunfish's thoughts on the matter and how he sees this fitting into his normal views of QF management.
Interesting that Geoff is a performance scheme such as this when the SH pilots are being asked to take a four year pay freeze when the annual requirements of a 3% pay rise for 600 plus crew add up to about $3 million per annum. (Someone else's maths, not mine but it seems about right!)
Interesting that Geoff is a performance scheme such as this when the SH pilots are being asked to take a four year pay freeze when the annual requirements of a 3% pay rise for 600 plus crew add up to about $3 million per annum. (Someone else's maths, not mine but it seems about right!)
Join Date: May 2001
Location: Australia
Posts: 294
Likes: 0
Received 0 Likes
on
0 Posts
Good on yer Geoff - nice to see a big corporate type is conscious of some of the most disadvataged in our society and it is a pity that more big nasty corporations don't do the same. Never mind the tax stuff, let's just call him Robin Hood from now on.
Just one question though.... Where does this magic $60m, (and the $11bn for that matter), actually come from? It won't end up like when Macquarie paid over the odds for Sydney airport and then had to recoup it by cuts all over the place and drastically increasing the price of everything will it? (Can't see that working in the airline industry where they have real competition... where to from here will be very interesting to watch.)
Just one question though.... Where does this magic $60m, (and the $11bn for that matter), actually come from? It won't end up like when Macquarie paid over the odds for Sydney airport and then had to recoup it by cuts all over the place and drastically increasing the price of everything will it? (Can't see that working in the airline industry where they have real competition... where to from here will be very interesting to watch.)
Join Date: Jun 2001
Posts: 1,451
Likes: 0
Received 0 Likes
on
0 Posts
With Allco Equity Partners at the helm, I suspect QF employees - (and not only the pilots) - will soon be faced with a very similar situation to the one their pilots' domestic cousins were faced with some 16 years ago. I don't believe either side will handle the confrontation as badly as both sides did then. However, many will soon have to make some hard and almost certainly uncomfortable decisions in the not too distant future if they wish to remain with QF.
Unfortunatly, the QF domestic pilots have among their ranks quite a few whose track record in sticking to a decision when the going gets tough doesn't bear close examination - and you can bet 'the suits' both at Macquarie Bank and in current QF upper management will play that particular card with the finesse and skill of a Las Vegas card sharp.
Re the almost certainly that Dixon will use his - let's face it - very generous gift to charity as a huge and lifelong tax break, I don't believe any right-thinking person can begrudge him that. I believe any one of us would do the same in similar circumstances - I'm quite ready to say I would - and anyone who didn't could be considered a Quixotic fool.
Perhaps the cynics amongst us might be tempted to say that we hope he allocates some of his charitable contributions to organisations that will be dealing with the welfare of the far too many current QF employees who won't be working for QF in the not too distant future... or at least not at their current pay scales or conditions of service.
Unfortunatly, the QF domestic pilots have among their ranks quite a few whose track record in sticking to a decision when the going gets tough doesn't bear close examination - and you can bet 'the suits' both at Macquarie Bank and in current QF upper management will play that particular card with the finesse and skill of a Las Vegas card sharp.
Re the almost certainly that Dixon will use his - let's face it - very generous gift to charity as a huge and lifelong tax break, I don't believe any right-thinking person can begrudge him that. I believe any one of us would do the same in similar circumstances - I'm quite ready to say I would - and anyone who didn't could be considered a Quixotic fool.
Perhaps the cynics amongst us might be tempted to say that we hope he allocates some of his charitable contributions to organisations that will be dealing with the welfare of the far too many current QF employees who won't be working for QF in the not too distant future... or at least not at their current pay scales or conditions of service.
"And He sat down opposite the treasury, and began observing how the multitude were putting money into the treasury; and many rich people were putting in large sums. And a poor widow came and put in two small copper coins, which amount to a cent. And calling His disciples to Him, He said to them, 'Truly I say to you, this poor widow put in more than all the contributors to the treasury; for they all put in out of their surplus, but she, out of her poverty, put in all she owned, all she had to live on.'" (Mark 12:41-44)
Well done Geoff! Perhaps, a greater act of charity would be have been one done in anonymity!
And perhaps, as Jesus tells above, a greater act of charity this X-mas will be a J* pilot who gives a few bob to the Salvation Army.
Well done Geoff! Perhaps, a greater act of charity would be have been one done in anonymity!
And perhaps, as Jesus tells above, a greater act of charity this X-mas will be a J* pilot who gives a few bob to the Salvation Army.
Last edited by Gnadenburg; 15th Dec 2006 at 03:27.
Join Date: Oct 2002
Location: In Frozen Chunks (Cloud Cuckoo Land)
Age: 17
Posts: 1,521
Likes: 0
Received 0 Likes
on
0 Posts
Just quietly, i would rather Geoff, didnt reduce my income, to feather his nest and then donate to charity, I would like to recieve my pay increase
(to account for a minimum of inflation) for my time and effort, pay my portion to tax and associated welfare, then be free to decide to do what i wish with the rest of the money.
Its very generous of Geoff to donate money he has recieved by whittling away others wages.
Of course I may just be being cynical.
(to account for a minimum of inflation) for my time and effort, pay my portion to tax and associated welfare, then be free to decide to do what i wish with the rest of the money.
Its very generous of Geoff to donate money he has recieved by whittling away others wages.
Of course I may just be being cynical.
Join Date: Jan 2005
Location: sydney
Posts: 255
Likes: 0
Received 0 Likes
on
0 Posts
Blue Loo and Gnadenburg
Summed up in these two posts.
All Geoff see's is he can't lose.
What a way to appease a bunch of short memoried twits for all the short term monetary gains previously made during the destruction of QF.
If he obtained the money without lies, decite, false accountancy, loss of peoples jobs, pay and conditions and used genuine good management instead, I would agree!
But alas, lets more use the synonym of a pickpocket or extortionist taking your money then donating a portion to make himself feel better.
Sorry BA Lert, I disagree.
All Geoff see's is he can't lose.
What a way to appease a bunch of short memoried twits for all the short term monetary gains previously made during the destruction of QF.
If he obtained the money without lies, decite, false accountancy, loss of peoples jobs, pay and conditions and used genuine good management instead, I would agree!
But alas, lets more use the synonym of a pickpocket or extortionist taking your money then donating a portion to make himself feel better.
Sorry BA Lert, I disagree.
Last edited by rudderless1; 15th Dec 2006 at 06:18. Reason: spelling
Join Date: Jun 2004
Location: Brisbane, Australia
Posts: 331
Likes: 0
Received 0 Likes
on
0 Posts
Yep. Part of the equity, the VALUE, in this company, is being given to Uncle Geoff. EVERY Qantas employee has helped, in some small way, to create that value. But only Uncle Geoff and a select number of senior managers get a piece of it. S#!t-kicker employees get none of it. And it appears Geoff has considered how bad that looks and decides to give it to "indigenous health", etc. A huge tax deduction for him - he may end up not paying tax for years, if ever again!? Who knows. And he ends up smelling like roses to the community in general....!
Now, I'm no racist, but what the ....?! Dixon wants to freeze my pay for FOUR YEARS whilst giving away $60m of the wealth that I helped create to make aborigines healthier?? Now I'm not suggesting I deserve a full $60 mil also, but why doesn't Dixon distribute the $60 mil amongst all his STAFF... to say, "Well done, YOU people have helped create this. Thank you."
Nope, of course he wouldn't do that. How sad.
Spare me....
Now, I'm no racist, but what the ....?! Dixon wants to freeze my pay for FOUR YEARS whilst giving away $60m of the wealth that I helped create to make aborigines healthier?? Now I'm not suggesting I deserve a full $60 mil also, but why doesn't Dixon distribute the $60 mil amongst all his STAFF... to say, "Well done, YOU people have helped create this. Thank you."
Nope, of course he wouldn't do that. How sad.
Spare me....
Join Date: Jun 2005
Location: Sydney
Posts: 824
Likes: 0
Received 0 Likes
on
0 Posts
Ron and Edna Johns,
the lowlife lizard doesn't consider that Qantas employees have had ANYTHING to do with QF's success when you read comments he made in todays SMH-
"Mr Dixon said the company's value had not been fairly reflected in its share price, while its staff had been fairly rewarded. "Qantas has done a lot, a tremendous lot, for its staff … So I feel it's now time for the shareholders to be rewarded."
There you have it. It is QANTAS that has "done a lot" for it's staff and NOT the other way round............
Get me a bucket, I think I'm going to puke
The full article can be read here- http://www.smh.com.au/news/business/...685822850.html
the lowlife lizard doesn't consider that Qantas employees have had ANYTHING to do with QF's success when you read comments he made in todays SMH-
"Mr Dixon said the company's value had not been fairly reflected in its share price, while its staff had been fairly rewarded. "Qantas has done a lot, a tremendous lot, for its staff … So I feel it's now time for the shareholders to be rewarded."
There you have it. It is QANTAS that has "done a lot" for it's staff and NOT the other way round............
Get me a bucket, I think I'm going to puke
The full article can be read here- http://www.smh.com.au/news/business/...685822850.html
Join Date: Oct 2006
Location: perth
Posts: 2
Likes: 0
Received 0 Likes
on
0 Posts
Thanks Geoff
Step back and ask where he got 70million to give away!!
How is it that a pilot with upto a few hundred lives and a multi multi million dollar aircraft in his/her hand can earn a small percentage of GD.
Someone please advise me how it can be justified paying millions of dollars to ONE person for reducing Australian workers conditions and building an empire to line their own pockets .
How is it that a pilot with upto a few hundred lives and a multi multi million dollar aircraft in his/her hand can earn a small percentage of GD.
Someone please advise me how it can be justified paying millions of dollars to ONE person for reducing Australian workers conditions and building an empire to line their own pockets .
Join Date: Oct 2005
Location: Sydney, Australia
Age: 61
Posts: 122
Likes: 0
Received 0 Likes
on
0 Posts
Geoff's Donation
Whilst I don't claim to be a tax specialist, I have done a bit of work on Employee/Executive Share Schemes, and I know that the usual procedure is for the taxman to tax the Employee either on grant of the shares, or on cessation (broadly, on the earlier of acquiring them free of restrictions, ceasing employment or after 10 years).
So if GD elects to transfer his entitlements under the LTI scheme to a charitable trust, he would presumably be (a) taxed on the value of the benefits he receives and (b) receive a deduction on the value of the charitable contribution he has made. in other words, he won't actually have the shares and it will be from a tax position as if he had never had them. Fair enough, given he'll get no benefit from them, just as if you or I had elected to gift a proportion of our earnings to charity. I can't see that it will affect his tax position on his other earnings. And if that money if being used for genuine charitable purposes, that's tremendous and wouldn't it be good if the rest of us, at all income levels, did likewise?
As to the question of whether it would be better used to pay a better salary to QF employees, I'm sure that most employees would vote that way, if they could. Perhaps the solution is to try and negotiate a better long term incentive scheme for the pilots and other staff. In other words, given the pressure that's bound to come on costs as the new owners try to extract value for their premium, why not sacrifice some of the certain income you get now, for some "at risk" rewards, with additional upside if the business is profitable. That's the way the Macquarie bankers get paid - in a typical year most of them will have half their rem in at risk pay - but in a good year some will earn 3-4 x their base as bonus. The suits might even take the suggestion kindly, given their own experience in that kind of pay system....
Wonder how many senior captains would be willing to take that kind of risk - I'm sure the full pay and all the rostered days off would be hard to surrender, but I bet there are a few up and coming youngsters who'd risk some of the certain for the prospects of some additional , though uncertain pay...
So if GD elects to transfer his entitlements under the LTI scheme to a charitable trust, he would presumably be (a) taxed on the value of the benefits he receives and (b) receive a deduction on the value of the charitable contribution he has made. in other words, he won't actually have the shares and it will be from a tax position as if he had never had them. Fair enough, given he'll get no benefit from them, just as if you or I had elected to gift a proportion of our earnings to charity. I can't see that it will affect his tax position on his other earnings. And if that money if being used for genuine charitable purposes, that's tremendous and wouldn't it be good if the rest of us, at all income levels, did likewise?
As to the question of whether it would be better used to pay a better salary to QF employees, I'm sure that most employees would vote that way, if they could. Perhaps the solution is to try and negotiate a better long term incentive scheme for the pilots and other staff. In other words, given the pressure that's bound to come on costs as the new owners try to extract value for their premium, why not sacrifice some of the certain income you get now, for some "at risk" rewards, with additional upside if the business is profitable. That's the way the Macquarie bankers get paid - in a typical year most of them will have half their rem in at risk pay - but in a good year some will earn 3-4 x their base as bonus. The suits might even take the suggestion kindly, given their own experience in that kind of pay system....
Wonder how many senior captains would be willing to take that kind of risk - I'm sure the full pay and all the rostered days off would be hard to surrender, but I bet there are a few up and coming youngsters who'd risk some of the certain for the prospects of some additional , though uncertain pay...