The Chairman of Qantas, Margaret Jackson, announced today that Chief Executive Officer of Qantas, Geoff Dixon, had agreed to continue in his role until 1 July, 2007. Ms Jackson said that Mr Dixon’s current contract was due to expire in December 2005.
“Qantas’ performance has been outstanding under Geoff’s leadership, a period that has been described as the most tumultuous in civil aviation history,” Ms Jackson said.
“The Board believes it is important that Geoff continue to provide leadership stability over the next three years while Qantas faces the ongoing challenges of the global aviation industry, implements a range of growth and efficiency programs and completes an internal restructure.”
Ms Jackson said that Mr Dixon’s new employment contract provided an appropriate balance of fixed and variable pay in line with best practice remuneration design and the Australian Stock Exchange Corporate Governance Guidelines.
The key terms and conditions relating to Mr Dixon’s contract include:
* a 3 year term ending on 1 July, 2007;
* a Fixed Annual Remuneration (FAR) of $2 million that is inclusive of superannuation and subject to annual review; and
* a cash bonus equal to 60 per cent of FAR that is dependent on the company and Mr Dixon achieving agreed targets.
Mr Dixon continues to participate in incentive equity schemes that are subject to shareholder approval and operate under their own terms and conditions outside the contract of employment.
Pre-existing end of contract retirement payments which were negotiated under prior contracts continue to be recognised under this new employment agreement.