EasyJet 2011 Annual Report Download - page 59

Pension contributions
easyJet normally makes a contribution for Executive
Directors to a defined contribution pension scheme
of 7% of basic salary. While individuals are not obliged
to make a contribution, easyJet operates a pension
salary sacrifice arrangement where individuals can
exchange 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).
Where an Executive Director has reached the lifetime
pension limit, a cash alternative may be paid with the
agreement of the Committee.
External appointments
Executive Directors are permitted to accept one
appointment on an external board or committee
so long as this is not deemed to interfere with the
business of the Group. Any fees received in respect
of these appointments are retained directly by the
relevant Executive Director. No such fees were
received by Executive Directors during the year
ended 30 September 2011.
Service contracts
Carolyn McCall’s contract provides for 12 months’
notice by either party. On termination by the
Company, she would continue to receive 12 monthly
instalments of basic salary and benefits which would
cease to the extent that commensurate alternative
employment was taken up. Alternatively, by mutual
consent, the Company may elect to make a payment
to the value of 12 months’ basic salary only.
Bonus payments would be included in a termination
payment, payable on a pro-rata basis, only for the
period of time served from the start of the financial
year to the date of termination and not for any
period in lieu of notice. Any bonus paid would be
subject to the normal bonus targets, tested at the
end of the year.
Chris Kennedy’s notice period is 12 months by either
party. There is no provision for bonus to be paid
on termination.
The Company’s relationship with its Non Executive
Directors is governed by letters of appointment. The
Non Executive Directors are appointed for a period
not exceeding three years and their appointment
may be terminated with three months’ notice without
compensation
Details of the service contracts and letters of appointment currently in place for Directors who served during the
year are as follows:
Date of current service contract
or letter of appointment
Unexpired term at
30 September 2011 Notice period
Provision for
compensation
Executive
Carolyn McCall OBE 1 July 2010 n/a 12 months 12 months
Chris Kennedy 1 July 2010 n/a 12 months 12 months
Non Executive
Sir Michael Rake 1 April 2010 1 year 6 months 3 months None
Charles Gurassa (appointed 27 June 2011) 27 June 2011 2 years 9 months 3 months None
Sir David Michels (resigned 26 August 2011) 27 September 2010 n/a 3 months None
David Bennett 27 September 2010 2 years 3 months None
Keith Hamill 23 December 2008 3 months 3 months None
John Browett 27 September 2010 2 years 3 months None
Professor Rigas Doganis 27 September 2010 2 years 3 months None
Sven Boinet (resigned 30 September 2011) 11 February 2008 n/a 3 months None
Adele Anderson (appointed 1 September 2011) 1 September 2011 2 years 11 months 3 months None
Andy Martin (appointed 1 September 2011) 1 September 2011 2 years 11 months 3 months None
.
easyJet plc
Annual report
and accounts 2011
GovernanceCorporate responsibility
Business review Performance and risk
Overview Accounts & other information
57