EasyJet 2013 Annual Report Download - page 84

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easyJet plc Annual report and accounts 2013
82
How will the LTIP be operated in relation to the
2014 financial year awards?
The award levels of Performance Shares for the
Executive Directors in the 2014 financial year are
200% of salary for the Chief Executive and 150% of
salary for the Chief Financial Officer.
If Executive Directors elect to voluntarily defer more
of their bonus into shares beyond the compulsory
deferred element, Matching Share Awards may be
granted. The amount they voluntarily defer may be
eligible for a 1:1 match dependent on the delivery of
performance goals, with awards vesting over a
three year period. The CEO may voluntarily defer up
to 50% of the annual bonus earned and the CFO
may defer up to 33% of the bonus earned. The CEO
and CFO both deferred the maximum amount of
their 2013 financial year bonus and will be eligible for
Matching Awards on these amounts.
The 2014 financial year LTIP awards (Performance
and Matching Share Awards) will be subject to the
following performance conditions:
Below
Threshold
(0% vesting)
Threshold
(25%
vesting)
On-target
(40%
vesting)
Maximum
(100%
vesting)
ROCE
(50% of
total award) 15.0% 15.0% 18.5% 20.0%
Below
Threshold
(0% vesting)
Threshold
(25%
vesting)
Maximum
(100%
vesting)
TSR
(50% of total award) < median median
upper
quartile
Awards vest on a straight line basis between these
points. As with the awards granted in the 2013
financial year the ROCE targets are based on
average ROCE (including operating lease
adjustments) over the three year performance
period (being three financial years from 1 October
2013). The TSR targets are based on relative TSR
compared to companies ranked FTSE 51-150 at the
date of grant, where the average share price is
calculated over three months at the start and end
of the period. In addition, in order for the TSR
awards to vest, easyJet must have achieved
positive absolute TSR performance over the
performance period. The Executive Directors have
confirmed that they will retain the after tax value of
shares for a minimum of six months from the
vesting of this award.
These targets will require management to deliver
strong, sustainable performance over the period.
How will the Non-Executive Directors be paid
in the 2014 financial year?
The fees for the Chairman and Non-Executive
Directors will be as follows:
FY 2014 FY 2013
Chairman £300,000 £300,000
Basic fee for other
Non-Executive Directors £60,000 £55,000
Fees for Deputy Chairman
and SID Role £25,000 £25,000
Chairmen of the
Audit, Safety and
Remuneration Committees £15,000 £10,000
Chairman of the
Finance Committee £10,000 £10,000
Basic fees were reviewed and increased on
1 October 2013; the previous rates had been in place
since October 2010. Fees for the Chairmen of the
Audit, Safety and Remuneration Committees were
also increased at this time to reflect the increasing
workload of these Committees.
Governance
Directors’ remuneration report continued