QF CEO Payrise
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QF CEO Payrise
Salary balm for Qantas chief
Danny John
September 11, 2007
THE failure of the $11 billion private equity bid for Qantas may have deprived chief executive Geoff Dixon of tens of millions of dollars in longer-term bonuses and share payouts but he has cushioned the blow with a $2 million salary increase.
Mr Dixon, who would have held the same job if the Airline Partners Australia offer had succeeded, enjoyed a 60 per cent rise in the cash terms of his contract, according to the Qantas annual report released yesterday.
Almost all the overall increase in Mr Dixon's salary package of $5.35 million was accounted for by an extra $1.94 million "cash incentive" under the short-term benefit part of his employment with Qantas. That compares to $3.3 million he earned through the same method last year.
Under the terms of his contract, Mr Dixon gets 50 per cent of his total annual remuneration as a fixed payment, 30 per cent as a cash incentive if he meets internally set performance targets and 20 per cent in Qantas shares.
Adding those other elements to his superannuation benefits and travel perks helped to boost his total earnings for the year to June to just over $6.7 million compared with $5.27 million for the previous year.
Mr Dixon also continues to be the most significant shareholder among Qantas's board of directors, having seen his direct equity stake pass the 1 million shares mark during the year.
That holding is now worth nearly $5.8 million, based on the airline's closing share price of $5.61 yesterday. It is a significant leap in value on a year ago, when Qantas's shares were languishing around $3.50 before they soared on the back of APA's $5.45- a-share offer made last summer.
The stock has consistently outperformed that price since the Macquarie Bank-led consortium's bid fell over in May. Several major investors rejected the bid on the grounds it undervalued the airline's long-term prospects.
Mr Dixon's right-hand man, finance director Peter Gregg, who also would have been an instrumental player in an APA privately owned Qantas, received a more modest increase. His total package rose by just under $500,000 to $4.15 million, although the short-term cash part of his deal was $1.1 million higher. However, the impact of this on his overall deal was offset by what were described as larger post-employment benefits last year.
As for the outgoing chairman, Margaret Jackson, who was criticised by investors for being too supportive of the APA bid, her last full-year boardroom payment went up 11 per cent, or nearly $58,000, to $592,685.
She will stand down at the company's annual meeting in November
Danny John
September 11, 2007
THE failure of the $11 billion private equity bid for Qantas may have deprived chief executive Geoff Dixon of tens of millions of dollars in longer-term bonuses and share payouts but he has cushioned the blow with a $2 million salary increase.
Mr Dixon, who would have held the same job if the Airline Partners Australia offer had succeeded, enjoyed a 60 per cent rise in the cash terms of his contract, according to the Qantas annual report released yesterday.
Almost all the overall increase in Mr Dixon's salary package of $5.35 million was accounted for by an extra $1.94 million "cash incentive" under the short-term benefit part of his employment with Qantas. That compares to $3.3 million he earned through the same method last year.
Under the terms of his contract, Mr Dixon gets 50 per cent of his total annual remuneration as a fixed payment, 30 per cent as a cash incentive if he meets internally set performance targets and 20 per cent in Qantas shares.
Adding those other elements to his superannuation benefits and travel perks helped to boost his total earnings for the year to June to just over $6.7 million compared with $5.27 million for the previous year.
Mr Dixon also continues to be the most significant shareholder among Qantas's board of directors, having seen his direct equity stake pass the 1 million shares mark during the year.
That holding is now worth nearly $5.8 million, based on the airline's closing share price of $5.61 yesterday. It is a significant leap in value on a year ago, when Qantas's shares were languishing around $3.50 before they soared on the back of APA's $5.45- a-share offer made last summer.
The stock has consistently outperformed that price since the Macquarie Bank-led consortium's bid fell over in May. Several major investors rejected the bid on the grounds it undervalued the airline's long-term prospects.
Mr Dixon's right-hand man, finance director Peter Gregg, who also would have been an instrumental player in an APA privately owned Qantas, received a more modest increase. His total package rose by just under $500,000 to $4.15 million, although the short-term cash part of his deal was $1.1 million higher. However, the impact of this on his overall deal was offset by what were described as larger post-employment benefits last year.
As for the outgoing chairman, Margaret Jackson, who was criticised by investors for being too supportive of the APA bid, her last full-year boardroom payment went up 11 per cent, or nearly $58,000, to $592,685.
She will stand down at the company's annual meeting in November
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As I said earlier.
* For failure to provide adequate guidance to shareholders
*non disclosure of all relevant informaiton material to the bid from APA.
*Giving up his day job to work on the APA bid, talking down the company
pre APA to miraculously talking it up post APA.
* J* Asia $150m (estimates) losses
* AO collapse
* Maintenance issues
Just what does Fiduciary duty actually mean today?
26% payrise??
Which of the shareholders who were dudded by APA approved this rubbish? Oh course I forget..he(they) did
* For failure to provide adequate guidance to shareholders
*non disclosure of all relevant informaiton material to the bid from APA.
*Giving up his day job to work on the APA bid, talking down the company
pre APA to miraculously talking it up post APA.
* J* Asia $150m (estimates) losses
* AO collapse
* Maintenance issues
Just what does Fiduciary duty actually mean today?
26% payrise??
Which of the shareholders who were dudded by APA approved this rubbish? Oh course I forget..he(they) did
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Now we know why the company was going to be de-listed if the takeover went ahead.
This way the company would not have to release information such as this..
This way the company would not have to release information such as this..
Always wondered what Dixon has on the ASIC guys? Unbelievable what has gone on at QF with no action taken.
From today's SMH 11/9/07: (Jackson) " admits she and her board had no idea of the treasure trove locked away in the airline before those clever chaps at Airline Partners Australia - read Macquarie Bank - cames a-knockin' "
Shirely you can't be serious.
From today's SMH 11/9/07: (Jackson) " admits she and her board had no idea of the treasure trove locked away in the airline before those clever chaps at Airline Partners Australia - read Macquarie Bank - cames a-knockin' "
Shirely you can't be serious.
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Hey, its OK for gd to pick up a couple o' mil.
I mean we, the QF staff, are all still sitting atop our pile of coin from the massive bonus. $1000 dollars (gross) woohoo, I'm rich!
I will certainly be working a lot harder now I have my profit share incentive in the form of $1000 dollars worth of QF shares, (wow, isn't thats fabulous) and I only have to wait 3 years before I can sell them. (never mind)
(I'm going to work my but off for the next three years now that I, along with gd and pg. have a share in this great company, )
You have got to hand it to the guys running this company, they sure know how to lead by example, and rally the troops. The future looks bright.
I mean we, the QF staff, are all still sitting atop our pile of coin from the massive bonus. $1000 dollars (gross) woohoo, I'm rich!
I will certainly be working a lot harder now I have my profit share incentive in the form of $1000 dollars worth of QF shares, (wow, isn't thats fabulous) and I only have to wait 3 years before I can sell them. (never mind)
(I'm going to work my but off for the next three years now that I, along with gd and pg. have a share in this great company, )
You have got to hand it to the guys running this company, they sure know how to lead by example, and rally the troops. The future looks bright.
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I was thinking the same thing Neville...
OK, so I hope that all you shareholders out there, who are entitled to attend, speak at and vote at the upcoming AGM, take advantage of those rights and do so. Or, proxy to someone you know who is going.
One might start by asking how the Board justifies its pay rise, based on Jackson's unlocking-value comments (as reported in the SMH). How is it that a competent Board did not see that sort of value in the enterprise? If they did not, they are incompetent and should all stand down. If they did, but did nothing to 'unlock' it, then they are either incompetent or reckless; either way they should all stand down.
If enough shareholders get together, they can not only demand items be put on the AGM agenda, they can actually demand that a general meeting be called.
Any arguments which might be raised by those seeking to defend themselves to the effect that the QF share price rose under their stewardship (so you should all be grateful) might be countered with comparisons against global airline indices and other individual airlines.
You people who own QF shares (I don't) have a certain degree of power, if you band together and use it. It's all in the Qantas Sale Act.
OK, so I hope that all you shareholders out there, who are entitled to attend, speak at and vote at the upcoming AGM, take advantage of those rights and do so. Or, proxy to someone you know who is going.
One might start by asking how the Board justifies its pay rise, based on Jackson's unlocking-value comments (as reported in the SMH). How is it that a competent Board did not see that sort of value in the enterprise? If they did not, they are incompetent and should all stand down. If they did, but did nothing to 'unlock' it, then they are either incompetent or reckless; either way they should all stand down.
If enough shareholders get together, they can not only demand items be put on the AGM agenda, they can actually demand that a general meeting be called.
Any arguments which might be raised by those seeking to defend themselves to the effect that the QF share price rose under their stewardship (so you should all be grateful) might be countered with comparisons against global airline indices and other individual airlines.
You people who own QF shares (I don't) have a certain degree of power, if you band together and use it. It's all in the Qantas Sale Act.
