EasyJet 2013 Annual Report Download - page 60

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easyJet plc Annual report and accounts 2013
58
Governance
Chairman’s statement on corporate governance
Focus on
governance
John Barton
Non-Executive
Chairman
Board focus
During the year ended 30 September 2013, much
of the Board’s time was spent reviewing and
scrutinising the new fleet selection process to
ensure it was the right deal for the Company and
its shareholders (the outcome of which was
ultimately approved by shareholders in July 2013).
A substantial amount of time was spent on the
fleet selection process in scheduled Board meetings
and two ad hoc Board meetings were also held in
relation to the process. When I was appointed,
I spent time with the fleet selection project team
to understand the rationale for easyJet placing an
aircraft order and the optimal timing of such an
order. I also met with Boeing, Airbus and some of
the Company’s largest shareholders as part of the
process. I was actively involved in the latter stages
of the Board’s fleet selection process and in
ensuring that this was the correct decision for
easyJet to recommend to its shareholders. The
Board also constituted a Fleet Oversight and
Governance Committee, chaired by Charles
Gurassa, specifically to oversee the governance
of the fleet selection process. The Committee
met nine times during the year to ensure that
the highest standards of governance, control and
ethical behaviour were being applied during the
fleet selection process and that these continued
to be maintained. As part of the governance
process, the Committee relied on the input of
two independent third parties, as well as easyJet’s
Internal Audit function, to review the controls, the
overall governance and the construction of financial
models surrounding the process. The Committee
will continue to provide governance oversight on
the selection of the engine suppliers relating to
the order of new generation aircraft.
The Board created a new Safety Committee in
January 2013 to enhance Board oversight on the
management of safety and security issues at
easyJet and enable more in-depth reviews of
safety-related matters by Board members. This
standing Committee is chaired by Professor Rigas
Doganis, who has a wealth of experience in the
aviation sector. Keith Hamill also brings his prior
industry experience to the Committee. The third
Committee member is Geoff Want. Geoff is not a
member of the Board, but was appointed on the
basis of his independent safety knowledge. He will
provide Committee members and the Board with
expert, objective input on all aspects of safety and
security. Since its constitution, the Committee has
DEAR SHAREHOLDER
At easyJet, we are committed to
maintaining high standards of corporate
governance to enhance performance and
for the protection of our shareholders.
The corporate governance report which
follows is intended to give shareholders
an understanding of the Group’s corporate
governance arrangements and how
they operated during the year ended
30 September 2013, including how the
Group complied with the principles of
the UK Corporate Governance Code.
I joined easyJet on 1 May 2013, taking over from
Mike Rake as the Company’s Non-Executive
Chairman. Following my appointment, my induction
was full, formal, tailored and included meetings with
easyJet’s key executives and various institutional
shareholders and high value suppliers. I have also
taken full advantage of easyJet’s “back to the shop
floor” programme, which has allowed me to spend
time within the operational environment seeing the
commitment given every day by our pilots, cabin
crew, maintenance, base staff and others to deliver
the easyJet service.