EasyJet 2015 Annual Report Download - page 77

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Strategic report Governance Accounts
73
www.easyJet.com
Awards vest on a straight-line basis from threshold to on-target
and from on-target to maximum. As with the awards granted
in the 2015 financial year, ROCE targets are based on average
ROCE over a three-year performance period, commencing on
1 October 2015. TSR targets are based on relative TSR compared
to companies ranked FTSE 31-130 at the start of the
performance period, 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-based awards to vest, easyJet must have
achieved positive absolute TSR over the performance period.
The weighting on ROCE and TSR has been rebalanced for the
2016 financial year from an equal split to a 70/30 split in
favour of ROCE.
Targets are set taking account of management’s strategic plan,
market consensus and the Board’s strong focus on driving value
from its increasing capital base. The ROCE target range is the
same as last year but with a small enhancement for achieving
target expectations within the range. The Committee considers
the range of ROCE targets set to be at least as demanding as
those set in prior years, given that the level of return required to
be created for vesting to take place will be calculated from
a significantly higher capital base reflecting the growth and
replacement of in the Company’s fleet during the period
through to 30 September 2018.
How will the Non-Executive Directors be paid in the 2016
financial year?
The fees for the Chairman and Non-Executive Directors will
be as follows:
Chairman £300,000
Basic fee for other Non-Executive Directors £60,000
Fees for Deputy Chairman and SID role(1) £25,000
Chair of the Audit, Safety and Remuneration
Committees(1) £15,000
Chair of the Finance Committee(1) £10,000
(1) Supplementary fees.
There are no changes to basic fees, which were last reviewed
and increased on 1 October 2013.
What did the Directors earn in relation to the 2015 financial year?
The table below sets out the amounts earned by the Directors (£’000) (Audited):
2015 2014
£’000
Fees and
Salary Benefits(5) Bonus(6) LTIP(7) Pension(8) Total
Fees and
Salary Benefits Bonus LTIP(9) Pension Total
Executive
Carolyn McCall OBE 694 4 917 4,534 49 6,198 677 5 1,034 7,446 47 9,209
Chris Kennedy(1)(10) 394 – – – 20 414 418 5 474 3,941 31 4,869
Non-Executive
John Barton 300 – – – – 300 300 – – – – 300
Charles Gurassa 100 – – – – 100 100 – – – – 100
Adèle Anderson 85 – – – – 85 66 – – – – 66
David Bennett(2) – – – – – – 78 – – – – 78
Dr. Andreas Bierwirth(3) 60 – – – – 60 17 – – – – 17
John Browett 60 – – – – 60 60 – – – – 60
Professor Rigas
Doganis(4) 13 – – – – 13 75 – – – – 75
Keith Hamill OBE 60 – – – – 60 60 – – – – 60
Andy Martin 60 – – – – 60 60 – – – – 60
François Rubichon(3) 60 – – – – 60 17 – – – – 17
Total 1,886 4 917 4,534 69 7,410 1,928 10 1,508 11,387 78 14,911
(1) Left the Board on 1 September 2015.
(2) Left the Board on 1 October 2014.
(3) Appointed to the Board on 22 July 2014.
(4) Left the Board on 1 December 2014.
(5) Benefits relate to the cost to the Company of personal accident and life assurance cover and the value of shares during the year under the Company’s
Share Incentive Plan.
(6) One-third of the bonus will be compulsorily deferred in shares for three years and subject to forfeiture.
(7) This relates to the LTIP awards granted in December 2012 which vest in December 2015 based on performance measured to 30 September 2015. For the
purposes of this table, the award has been valued using the average share price over the three months to 30 September 2015 of £16.988. This compares
to £7.37 at grant.
(8) Carolyn McCall has reached her lifetime pension limit and received a cash alternative of £48,605 in lieu of pension contributions.
(9) This relates to the January 2012 awards which vested in January 2015 based on performance measured to 30 September 2014. For the purposes of the
table in last year’s report, the award was valued using the average share price over the three months to 30 September 2014 of £13.275. The value has been
updated in this table using the share price at the date of vesting of £16.71. This compares to £3.928 at grant.
(10) Entitlement to a 2015 annual bonus and vesting under the December 2012 LTIP awards lapsed for Chris Kennedy following his resignation during the year
and cessation of employment.