EasyJet 2009 Annual Report Download - page 51

49 easyJet plc Annual report and accounts 2009
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.
Provisions applying to termination prior to 31 March 2010
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.
Provisions applying to termination or resignation after 31 March 2010
In order to facilitate retention and a period of continuity, Andrew Harrison’s contractual provisions on termination and resignation were revised on 15 May
2009.
The revised terms provide that in relation to a termination by the Company (other than for certain defined bad leaver reasons) or on resignation, Andrew
Harrison has an entitlement to receive a payment in lieu of notice in respect of the full 12 month notice period with no obligation to mitigate the payment,
which would also be provided as a single lump sum. The payment in lieu of notice would include the value of 12 months’ basic salary, 12 months’ pension
contributions and the on target level of annual bonus of 100% of salary. Based on the current level of salary this would amount to £1,220,000. He would also
receive a pro-rated bonus for the year of his termination based on performance up to the date of his termination. In addition, it was agreed that Andrew
Harrison would be considered a good leaver for the LTIP award made in December 2007, subject to the usual pro-rating for performance and service.
This is explained on page 54.
Jeff Carr’s contract was changed during the year under review, in line with a new policy for Executive Directors, to be terminable on 12 months notice by
both parties (formerly six months). Jeff resigned during the year and his resignation was effective on 25 September 2009. There were no express provisions
for compensation on termination in Jeff’s service contract. No payment was made, or will be made, in relation to his departure.
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 with three months notice 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 shareholders
every three years, and was last re-elected by shareholders in February 2009, although this does not prejudice his rights under the relationship agreement with
the Company disclosed at the time of the Company’s IPO, which are set out in the Corporate Governance section of this Annual report on page 40.
Details of the service contracts and letters of appointment currently in place for Directors who served during the year are as follows:
Date of current
letter of appointment Unexpired term Notice period
Provision for
compensation
Executive
Andrew Harrison 15 September 2005
(amended 15 May 2009)
n/a 12 months
(6 months
from executive)
12 months
Jeff Carr (resigned 25 September 2009) 24 November 2004 n/a 6 months
Non Executive
Sir Colin Chandler (resigned 1 July 2009) 26 September 2007 n/a 3 months None
Sir David Michels 26 September 2007 12 months 3 months None
Sir Michael Rake (appointed 1 June 2009) 17 April 2009 2 years 9 months 3 months None
Dawn Airey (resigned 31 December 2008) 26 September 2007 n/a 3 months None
David Bennett 26 September 2007 12 months 3 months None
Sven Boinet 11 February 2008 1 year 5 months 3 months None
John Browett 27 September 2007 12 months 3 months None
Professor Rigas Doganis 26 September 2007 12 months 3 months None
Sir Stelios Haji-Ioannou n/a n/a n/a n/a
Keith Hamill (appointed 1 March 2009) 23 December 2008 2 years 5 months 3 months None
Bob Rothenberg (appointed 1 August 2009) 29 July 2009 2 years 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.
3 December 2008)
12 months (from