EasyJet 2011 Annual Report Download - page 60

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Report on Directors’ remuneration
Continued
Non Executive Directors (NEDs)
The NEDs, including the Chairman, have letters of appointment which set out their duties and responsibilities.
The key terms of the appointments are set out in the table below:
Provision Policy
Appointment letters Aligned to the standard terms appended to the UK Corporate Governance Code. Copies of the
service contracts and letters of appointment are available on request from the Company Secretary
Period Three year term
Termination By the Director or the Company at their discretion without compensation and with three months
notice
Fees See below
Expenses Reimbursement of reasonable travel and other expenses incurred in the performance of their duties
Time commitment Anticipated to be 12 days per annum depending on Board and Committee requirements and
corporate activity
The Board as a whole determines the remuneration
of the Company’s Non Executive Directors, with Non
Executive Directors exempting themselves from
discussions and voting. When determining the
remuneration of Non Executive Directors, account is
taken of practice adopted in competitors and other
similar sized organisations, committees chaired and
anticipated time commitment. During the year under
review the NEDs (other than the Chairman and
Deputy Chairman) received a basic annual fee of
£55,000 in respect of their Board duties. A further fee
of £10,000 is paid in respect of Chairmanship of the
Audit Committee and the Remuneration Committee.
The annual fee for the Chairman was £300,000 and
for the Deputy Chairman was £90,000.
The current fee level of NEDs fees were agreed in
October 2010 and have remained unchanged
since then and are applicable for the year ending
30 September 2012.
Total shareholder return
Given the nature of easyJet’s operations, the
Committee does not consider that there is a suitable
comparator group against which to measure total
shareholder return. However, for completeness, the
following graph shows the Company’s performance
compared with the performance of the FTSE 250 and
that of a group of European Airlines1. The FTSE 250
has been chosen as it is the FTSE index in which the
Company resides. The group of European Airlines
comprises companies operating in a comparable sector.
Total shareholder return
£
40
20
0
60
80
100
120
140
30 Sep 06 30 Sep 07 30 Sep 08
30 Sep 09
30 Sep 10
30 Sep 11
Source: Thomson Reuters
This graph shows the value, by 30 September 2011 of £100 invested in easyJet on 30 September 2006 compared with the value of £100 invested in
the FTSE 250 Index or a comparator group of airlines. The other points plotted are the values at intervening financial year-ends.
Note 1: British Airways, Lufthansa, Air France-KLM and Iberia have all been included in the comparative European Airlines group.
easyJet FTSE 250 Index
Comparator Airlines
58
easyJet plc
Annual report
and accounts 2011