EasyJet 2008 Annual Report Download - page 43

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easyJet plc
Annual report and accounts 2008
Report on Directors’
remuneration
continued
The performance criteria for vesting of these share options and awards are as follows:
Discretionary Share Option Schemes (A and B)
Based on the average annual growth in earnings per share (EPS), where no shares vest if EPS growth is less than RPI plus 5%, 30% vest where
EPS growth is RPI plus 5% and 100% vest where EPS growth is RPI plus 20%. Straight-line vesting will occur between these points.
It is understood that the awards made on 2 June 2005 will vest in full.
Long Term Incentive Plan (C and D)
Awards are subject to the achievement of the following return on equity targets:
Threshold Target Maximum
Grant date Basis year (25% vests) (50% vests) (100% vests)
December 2005 30 September 2006 8.4% 8.8% 10.0%
30 September 2007 11.8% 12.4% 13.0%
30 September 2008 12.5% 13.2% 15.0%
December 2006 30 September 2009 12.5% 14.0% 16.5%
December 2007 30 September 2010 12.5% 14.0% 16.5%
February 2008 30 September 2010 13.5% 15.5% 17.5%
Straight-line vesting will occur between the threshold, target and maximum targets set out above.
The December 2005 award will vest in December 2008. This award consisted of three tranches with targets relating to return on equity achieved in the
three years ended September 2006, 2007 and 2008. The first two tranches will vest in their entirety, but none of the shares in the third tranche will vest.
The returns on equity shown for the February 2008 grant relate to awards in excess of 100% of basic salary.
Chief Executive Officer Recruitment Award (E)
50% of the award is based on the average annual growth in EPS. No shares vest if EPS growth is less than RPI plus 5%, 30% vest where EPS growth
is RPI plus 5% and 100% vest where EPS growth is RPI plus 20%. Straight-line vesting occurs between these points.
The remaining 50% is based on the same criteria as the December 2005 LTIP award.
On behalf of the Board
Sir Colin Chandler
Chairman
17 November 2008
41
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