EasyJet 2008 Annual Report Download - page 24

D. Staff rewards and recognition
Share schemes
easyJet once again offered all employees the opportunity to join its
popular all employee share plans, easyJet Shares 4 Me, through its
Save As You Earn (SAYE), Buy As You Earn (BAYE) and Free Share
schemes. Take-up of the schemes remains very positive with over
80% of eligible staff now participating in one or more of the plans.
These are HM Revenue and Customs (HMRC) approved schemes
open to all employees on the UK payroll. For employees who are
on non-UK payrolls, international schemes have also been established
with similar terms and conditions to the UK scheme, albeit without
the UK tax benefits.
Under SAYE participants may elect to save up to £250 per month under
a three-year savings contract. An option is granted by easyJet to buy
shares at a price based on the market price of the shares at the time
of the grant. At the end of the savings period, a tax free bonus is applied
to the savings and the option becomes exercisable for a period of six
months. The Company has made grants under the Sharesave scheme
in each of 2005, 2006, 2007 and 2008, with options being granted at
the maximum discount allowed under an approved scheme of 20%
to the market price at the time of the grant.
BAYE is managed under a share incentive plan and is open all year.
This scheme is open to all employees on the UK payroll. Employees
can allocate part of their pre tax salary up to a maximum of £1,500
per annum, to purchase “partnership” shares in easyJet. For every
share purchased through the partnership scheme, easyJet purchases
a “matching” share. Employees must remain in employment with
easyJet for three years from the date of purchase of partnership
shares in order to qualify for matching shares, and for five years for
shares to be transferred to them tax free. The employee retains rights
over both their own shares and the matching shares, is eligible to receive
any dividends paid and is able to vote at meetings once the shares
are purchased.
Free shares
To further encourage share ownership, for a second year running easyJet
gave all employees a one-off award of free easyJet shares, equivalent to
two weeks’ pay, subject to a minimum of £600 for full time employees
and the HMRC upper limit of £3,000. This is also under the HMRC
approved Share Incentive Plan.
easyJet Shares 4 Me has been the recipient of a total of five major
industry awards:
• “Best Overall performance in fostering share ownership”;
• “Most effective communication of an employee share plan”
at the ifsProShare Annual Awards Dec 2006;
• “Best New Share Plan” at the ifsProShare Annual Awards 2005;
• “Most Effective All-Employee Share Plan Strategy Award” from
Employee Benefits magazine;
• “Most Innovative Employee Share Plan” at the Institute of Chartered
Secretaries and Administrators Company Secretary Awards 2006.
easyJet plc
Annual report and accounts 2008
Corporate and
social responsibility
continued
People opinion survey
In May 2008 easyJet conducted its third annual people opinion survey
– easyJet Pulse – in order to fully understand its people’s issues and
measure progress. With a commitment from the Board to share the
results of Pulse “warts and all” 72% of easyJet people responded to
Pulse (which continues to be high, particularly within the airline industry).
72% of people are satisfied or very satisfied working for easyJet.
A key positive headline for the organisation was the high degree in
which easyJet people are advocates of the Company and the service it
provides; 74% of employees would recommend easyJet as an employer
to other people, while there is more work to be done in the areas
of communication and cross company teamwork.
The results overall, whilst still very pleasing, are slightly down on last year’s
exceptional performance. easyJet is not surprised by this given the challenges
faced in the industry in 2008 and the wider economic climate.
Ideas pay
As a direct result of last year’s Pulse survey feedback, easyJet developed
and launched an electronic staff ideas portal. This encourages employees
to submit ideas they believe will generate revenue or reduce costs but
in a way that allows easyJet to stay true to its values and brand promise.
Response to the scheme has been overwhelmingly positive with 861
ideas received during 2008. 320 people have received a reward payment
for their submission (and the Pulse results improved as a direct result
of the action taken).
Communication
This year easyJet continued in its focus on improving two-way
communication across the Company:
Flight Plan 2008 – the process launched successfully in 2007 was
repeated by delivering sessions led by a member of the executive team
to update employees on easyJet’s strategy and annual financial results.
Back to the shop floor – Members of the executive and management
team as part of their induction and ongoing development take part
in this programme. They spend a day with crew onboard the aircraft,
experiencing what they do and obtaining a greater appreciation of
the customer facing part of the business.
CRM – Members of easyJet’s executive and management team have
been attending CRM (Crew Resource Management) sessions in order
to deliver a business briefing and to promote open discussions between
cabin crew, pilots and the executive team. This has been positively
received and will continue throughout the next financial year.
Where a cascade of information was more appropriate, easyJet
developed and introduced a combination of electronic and hard copy
periodical publications, namely: High 5, p-monthly, p-weekly.
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