EasyJet 2010 Annual Report Download - page 51

Overview Business review Governance Accounts Other information
easyJet plc
Annual report and accounts 2010
49
In order to enable the Company to operate its activities as an airline on the basis of appropriate management resources and structure
while it undertook an effective recruitment process for a new Chief Executive and Chief Financial Officer, the Remuneration Committee
subsequently approved a further fixed term agreement covering the period 1 April to 30 September 2010. Under these arrangements,
Andrew Harrison agreed that he would continue to act as Chief Executive until 30 June 2010 and that he would be available for
consultation and to provide advice as requested for the three months to 30 September 2010. The total remuneration for the period from
1 April to 30 September 2010 was fixed at £750,000 plus a bonus of £250,000. Also, under these arrangements he agreed that the
previous entitlement under the 15 May 2009 agreement relating to the 2007 LTIP of up to 193,325 shares would not apply.
For reasons explained below in the section “2010 Bonus”, Andrew Harrison has also agreed to waive a potential claim for a pro rata
bonus for the period 1 October 2009 to 31 March 2010 which could have amounted up to £590,000.
The amount shown in the Directors’ emoluments table above for Andrew Harrison includes a lump sum payment of £1,221,300 under
the 15 May 2009 agreement and the amounts paid under the 1 April 2010 fixed term agreement covering the period 1 April
to 30 September 2010.
Directors’ remuneration 2010
There was a pay freeze in place during the year under review for Executive Directors and the wider senior management population.
Remuneration for the new Chief Executive and Chief Financial Officer was agreed with them to secure their recruitment and is consistent
with the Company’s remuneration policies.
2010 Bonus
The results and performances targets for the year were not achieved in full. However, these were materially affected by the substantial
disruption following the eruption of the Eyiafjalla volcano, which increased costs by £27.3 million and resulted in lost contribution
estimated at approximately £30 million. In view of this it was decided that certain management and staff with bonus entitlements,
excluding the Executive Management Team, would benefit from discretion on the profit element of their bonuses at 50% of their
maximum entitlements. The Executive Management Team (including Carolyn McCall OBE and Chris Kennedy who joined the Company
in July 2010) informed the Board and Remuneration Committee, that in view of the effect of the further operating problems over the
summer and the resulting difficulties experienced by customers and staff, they did not consider that it would be appropriate for its
members to receive bonuses, even if it were deemed to be appropriate to make an adjustment for the effect of volcanic ash.
Accordingly, no bonus will be paid to the Executive Directors or other members of the Executive Management Team. Had it been
appropriate for the discretion applied to certain management and staff to be applied in the same way for Executive Directors, Carolyn
McCall OBE would have received £159,000 and Chris Kennedy would have received £48,000. Andrew Harrison would have received
£267,000.