EasyJet 2008 Annual Report Download - page 40

Shareholding guideline
Executive Directors are required to build up a shareholding equivalent to 175% of basic salary. This was increased from 100% of salary following
the 2008 AGM.
For senior executives who report to the Executive Management Team and receive LTIP awards, a 50% share ownership guideline applies.
External appointments
Executive Directors are permitted to accept one appointment on an external board or committee so long as this is not deemed to interfere
with the business of the Group. Any fees received in respect of these appointments are retained directly by the relevant Executive Director.
Andrew Harrison was a Non Executive on the board of Emap plc until 19 March 2008 when it was acquired by Eden Bidco Limited, a private company.
The Board approved this arrangement. The fee received for this role in the period to Emap ceasing to be listed was £46,000.
Service contracts
The service contracts of the Executive Directors that served during the year were of no fixed term.
Andrew Harrison’s service contract is terminable by the Company giving 12 months notice or by Andrew giving six months notice. On termination of
Andrew’s employment he will receive a pro rated bonus for the year of his termination based on performance up to the date of his termination. In addition,
the Company has the right to pay Andrew, in lieu of notice and on a monthly basis until he secures commensurate employment, an amount equal to base
salary, pension and bonus earned in the previous year.
Jeff Carr’s notice period is six months. There are no other provisions for compensation for loss of office.
The Company’s relationship with its Non Executive Directors is governed by letters of appointment. The Non Executive Directors are appointed
for a period not exceeding three years and their appointment may be terminated without compensation.
Sir Stelios Haji-Ioannou does not have a letter of appointment and his appointment is of no fixed term. He is however subject to re-election by the
shareholders every three years, and was last re-elected by shareholders in February 2006. This does not prejudice his rights under the relationship
agreement with the Company disclosed at the time of the Company’s IPO, which allow him to be Chairman of the Board and the Company for so
long as he and easyGroup Holdings Limited hold at least 10% of the issued ordinary share capital of the Company and the Company is entitled to
use the easyJet brand.
Details of the service contracts and letters of appointment currently in place for Directors who have served during the year are as follows:
Date of current Provision for
letter of appointment Unexpired term Notice period compensation
Executive
Andrew Harrison 15 September 2005 n/a 12 months 12 months
(6 months from executive)
Jeff Carr 24 November 2004 n/a 6 months 6 months
Non Executive
Sir Colin Chandler 26 September 2007 1 year 10 months 3 months None
Dawn Airey 26 September 2007 1 year 10 months 3 months None
David Bennett 26 September 2007 1 year 10 months 3 months None
Sven Boinet (appointed 1 March 2008) 1 March 2008 2 years 3 months 3 months None
John Browett 27 September 2007 1 year 10 months 3 months None
Professor Rigas Doganis 26 September 2007 1 year 10 months 3 months None
Sir Stelios Haji-Ioannou n/a n/a n/a n/a
Diederik Karsten (resigned 21 February 2008) 26 September 2007 1 year 10 months 3 months None
Sir David Michels 26 September 2007 1 year 10 months 3 months None
Non Executive Directors’ letters of appointment are aligned to the standard terms appended to the Combined Code.
Copies of the service contracts and letters of appointment are available on request from the Company Secretary.
easyJet plc
Annual report and accounts 2008
Report on Directors’
remuneration
continued
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