EasyJet 2010 Annual Report Download - page 48

easyJet plc
Annual report and accounts 2010
Report on Directors’ remuneration
continued
46
Benefits
easyJet has a very low level of benefits provision and does not include, for example, company cars or final salary pensions as part of the
package.
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. No fees were received by Executive Directors during the year ended 30 September 2010.
Service contracts
Carolyn McCall’s contract provides for 12 months’ notice by either party. On termination by the Company, she will continue to receive 12
monthly instalments of basic salary and benefits that would cease to the extent that commensurate alternative employment was taken up.
Alternatively, by mutual consent, the Company may elect to make a payment to the value of 12 months basic salary only. With regard to
bonus, this would be included in a termination payment, payable on a pro-rata basis, only for the period of time served from the start of
the financial year to the date of termination and not for any period in lieu of notice. Any bonus paid would be subject to the normal
bonus targets, tested at the end of the year.
Chris Kennedy’s notice period is six months by either party, during the first six months of employment and twelve months by either party
thereafter. There is no provision for bonus to be paid on termination.
In recognition of the Company’s low level of benefits provision and to avoid consolidation into basic salary, the absence of future benefit
provision equivalent to those provided under previous employment arrangements for Chris Kennedy was compensated by two payments
each of £25,000, one made in the month of joining (July 2010) and one made three months later (October 2010). As payments are
intended to compensate future benefit provision, these will be repayable if Chris Kennedy were to leave within 12 months of his
start date.
The arrangements in place for Andrew Harrison throughout the year under review are set out on pages 48 and 49.
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 did not have a letter of appointment and his appointment was of no fixed term.
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
service contract or
letter of appointment
Unexpired term at
30 September 2010 Notice period
Provision for
compensation
Executive
Carolyn McCall OBE
(appointed 1 July 2010)
1 July 2010 n/a 12 months 12 months
Chris Kennedy (appointed 1 July 2010) 1 July 2010 n/a 6 months 6 months
Andrew Harrison (resigned 30 June 2010) 15 September 2005
(amended 15 May 2009
and 1 April 2010)
n/a 12 months 12 months
Non-Executive
Sir Michael Rake 1 April 2010 2 years 6 months 3 months None
Sir David Michels 27 September 2010 3 years 3 months None
David Bennet 27 September 2010 3 years 3 months None
Sven Boinet 11 February 2008 5 months 3 months None
John Browett 27 September 2010 3 years 3 months None
Professor Rigas Doganis 27 September 2010 3 years 3 months None
Keith Hamill 23 December 2008 1 year 3 months 3 months None
Sir Stelios Haji-Ioannou
(resigned 14 May 2010)
n/a n/a n/a n/a
Bob Rothenberg (resigned 14 May 2010) 29 July 2009 n/a 3 months None