EasyJet 2011 Annual Report Download - page 63

Download and view the complete annual report

Please find page 63 of the 2011 EasyJet annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 108

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108

The potential vesting of outstanding awards if the
performance were based on that for the year under
review is as shown at the end of this section.
The performance criteria for vesting of these share
options and awards are as follows:
Long Term Incentive Plan (A)
Awards prior to those made during the year under
review were subject to the achievement of the
following Return on Equity targets:
Grant
date Basis year
Threshold
(25% vests)
Target
(50% vests)
Maximum
(100% vests)
5 July
2010
30 September
2012 9.0% 12.0% 15.0%
5 July
2010
30 September
2012 11.0% 13.0% 15.0%
Straight-line vesting will occur between the threshold,
target and maximum targets set out above.
The targets that applied to the awards of
performance shares made to Executive Directors
during the year under review were subject to the
achievement of the following Return on Capital
Employed targets:
Grant date Basis year
Threshold
(25% vests)
Target
(50% vests)
Maximum
(100% vests)
31 March
2011
30 September
2013 7.0% 8.5% 12.0%
31 March
2011
30 September
2013 10.0% 12.0% 13.0%
The comparison between ROCE and return on equity
depends on the capital structure. At the time that the
latest performance targets were set the same
performance would give rise to an ROCE approximately
two percent lower than return on equity
Matching Share Awards
Directors waived their bonuses for the year ended
30 September 2010, therefore no matching shares were
granted to Executive Directors in the year under review.
ABI Principles of Executive Remuneration
easyJet complies with the ABO Principles of Executive
Remuneration. These principles require that
commitments under all of the Company’s other share
ownership schemes, must not exceed 10% of the
issued share capital in any rolling 10 year period. The
requirement for shares under all current share
incentive schemes, (Long-term Incentive Plan,
Sharesave and Share Incentive Plan) will be satisfied
with shares purchases on the market. The remaining
three million options under the Discretionary Share
Option Schemes, when or if exercised, will continue
to be settled by the issue of new shares.
Potential vesting of outstanding awards
The extent of vesting is difficult to determine because
of the possible effect of economic uncertainty and
external factors of the remaining period to vesting.
On behalf of the Board
Keith Hamill
Remuneration Committee Chairman
14 November 2011
.
If the record financial performance of the year ended
easyJet plc
Annual report
and accounts 2011
GovernanceCorporate responsibility
Business review Performance and risk
Overview Accounts & other information
61
30 September 2013, 54% of the July 2010 grants and
94% of the March 2011 grants would vest. However,
current market forecasts consensus for future
performance would substantially reduce these
estimates the forecast vesting would be
approximately 15% and approximately 75% for the
July 2010 and March 2011 grants respectively.