EasyJet 2014 Annual Report Download - page 82

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80 easyJet plc Annual report and accounts 2014
How are the Non-Executive Directors paid?
The Chairman, Deputy Chairman and Non-Executive
Directors receive an annual fee (paid in monthly
instalments). The fee for the Chairman is set by the
Remuneration Committee and the fees for the Deputy
Chairman and Non-Executive Directors are approved by
the Board, on the recommendation of the Chairman and
Chief Executive.
OUR ANNUAL REPORT ON
REMUNERATION
Who is on our Remuneration Committee?
As at 30 September 2014, the members of the Committee
were: Charles Gurassa (Chair), François Rubichon, John
Browett, David Bennett and Professor Rigas Doganis.
Andy Martin stepped down from the Committee on 1 July
2014. David Bennett stepped down from the Committee
on 1 October 2014 and Professor Rigas Doganis will be
stepping down from the Committee on 1 December 2014
following their retirement from the Board. John Browett
and François Rubichon joined the Committee on 1 July 2014
and 22 July 2014 respectively. The responsibilities of the
Committee are set out in the Corporate Governance
section of the Annual Report on page 59.
The Chief Executive attends meetings by invitation and
assists the Committee in its deliberations as appropriate.
The Committee also receives assistance from the Group
People Director and the Group Head of Reward. The Group
Company Secretary acts as secretary to the Committee.
No Executive Directors are involved in deciding their
own remuneration.
Directors’ remuneration report continued
Element Purpose and link to strategy Operation (including maximum levels where applicable)
Fees To attract and retain a high-
calibre Chairman, Deputy
Chairman and Non-Executive
Directors by offering market-
competitive fee levels.
The Chairman is paid an all-inclusive fee for all Board responsibilities.
The other Non-Executive Directors receive a basic Board fee, with
supplementary fees payable for additional Board Committee responsibilities.
The Chairman and Non-Executive Directors do not participate in any of
the Company’s incentive arrangements.
Fee levels are reviewed on a periodic basis, and may be increased, taking
into account factors such as the time commitment of the role and market
levels in companies of comparable size and complexity.
Flexibility is retained to exceed current fee levels if it is necessary to do so
in order to appoint a new Chairman or Non-Executive Director of an
appropriate calibre.
Necessary expenses incurred undertaking Company business will
be reimbursed so that the Chairman and Non-Executive Directors
are not worse off, on a net of tax basis, for fulfilling Company duties.
No other benefits or remuneration are provided to the Chairman
or Non-Executive Directors.
Fee levels for current incumbents for the 2015 financial year are as follows:
• Non-Executive Chairman: £300,000;
• Non-Executive Director base fee: £60,000;
• supplementary fee for Deputy Chairman and Senior Independent Director
(SID) role: £25,000; and
• supplementary fee for Chair of the Audit, Remuneration and Safety
Committees: £15,000, and Finance Committee Chair: £10,000.
The Remuneration Committee is advised by New Bridge
Street (NBS), a trading name of Aon plc. NBS was
appointed by the Company in 2004. NBS advises the
Committee on developments in executive pay and on the
operation of easyJet’s incentive plans. Total fees paid to
NBS in respect of services to the Committee during the
2014 financial year were £161,000. NBS is a signatory
to the Remuneration Consultants’ Code of Conduct. The
Committee has reviewed the operating processes in place
at NBS and is satisfied that the advice it receives is
independent and objective.
How will the remuneration policy be applied for the
2015 financial year?
What are the Executive Directors’ current salaries?
The current and proposed salaries of the Executive
Directors are:
1 January 2015
salary
1 January 2014
salary Change
CE £698,600 £681,600 2.5%
CFO £430,800 £420,250 2.5%
The increase awarded to the Executive Directors is
consistent with the typical rate of increase being awarded
across the Group.
What are the terms of appointment of the
Non-Executive Directors?
The Chairman, Deputy Chairman and Non-Executive
Directors’ terms of appointment are recorded in letters
of appointment, which are usually renewed every three
years. The required notice from the Company is three
months in all cases. The Non-Executive Directors are not
entitled to any compensation on loss of office.