EasyJet 2013 Annual Report Download - page 77

www.easyJet.com 75
Governance
HOW IS REMUNERATION STRUCTURED?
Element
Purpose and
link to strategy Operation (including maximum levels)
Framework used to assess
performance and provisions for
the recovery of sums paid
Salary To provide the core
reward for the role.
Sufficient level to
recruit and retain
individuals of the
necessary calibre
to execute the
Company’s
business strategy.
Base salaries are normally reviewed annually, with changes
effective from 1 January.
Salaries are typically set after considering the salary levels in
companies of a similar size and complexity, the responsibilities
of each individual role, progression within the role, individual
performance and an individual’s experience. Our overall policy,
having had due regard to the factors noted, is normally to
target salaries up to the market median level.
Salaries may be adjusted and any increase will ordinarily
be (in percentage of salary terms) in line with those of the
wider workforce.
Increases beyond those granted to the wider workforce
(in percentage of salary terms) may be awarded in
certain circumstances such as where there is a change
in responsibility, progression in the role, experience or a
significant increase in the scale of the role and/or size,
value and/or complexity of the Group.
Salary levels for current incumbents for the 2014 financial year
are as follows:
• Chief Executive: £681,600.
• Chief Financial Officer: £420,250.
The Committee considers
individual salaries at the
appropriate Committee
meeting each year after
having due regard to the
factors noted in operating
the salary policy.
No recovery provisions
apply to salary.
Benefits In line with the
Company’s
strategy to keep
remuneration
simple and
consistent.
Executive Directors receive modest personal accident and life
assurance cover (0.5 x salary), at the same levels as the wider
employee population. The cost to the Company of providing
these benefits may vary from year to year depending on the
cost of insuring the benefit.
Executive Directors receive no other conventional executive
Company benefits.
Executive Directors can pay for voluntary benefits, where
Company purchasing power may provide an advantage
to employees.
Executive Directors are also eligible to participate in any
all-employee share plans operated by the Company, in line
with HMRC guidelines currently prevailing (where relevant),
on the same basis as for other eligible employees.
Should it be appropriate to recruit a director from overseas,
flexibility is retained to provide benefits that take account
of those typically provided in their country of residence
(e.g. it may be appropriate to provide benefits that are
tailored to the unique circumstances of such an appointment
as opposed to providing the benefits detailed above).
Not applicable.
No recovery provisions
apply to benefits.
Pension To provide
employees with
long-term savings
via modest pension
provisions in line
with the Company’s
strategy to keep
remuneration simple
and consistent.
Defined contribution plan with the same monthly employer
contributions as those offered to eligible employees below
the Board of 7% of basic salary. A cash alternative may
be considered.
While individuals are not obliged to make a contribution,
easyJet operates a pension salary sacrifice arrangement
where individuals can exchange part of their salary for
Company paid pension contributions. Where individuals
exchange salary this reduces easyJet’s National Insurance
Contributions. easyJet credits half of this saving to the
individual’s pension (currently 6.9% of the amount exchanged).
Not applicable.
No recovery provisions
apply to pension benefits.