EasyJet 2013 Annual Report Download - page 83

www.easyJet.com 81
Governance
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.
OUR ANNUAL REPORT ON
REMUNERATION
Who is on our Remuneration Committee?
The members of the Committee are: Charles
Gurassa (Chairman), David Bennett, Professor Rigas
Doganis and Andy Martin. The responsibilities of the
Committee are set out in the Corporate Governance
section of the Annual Report on page 66.
The CEO attends meetings by invitation and assists
the Committee in its deliberations as appropriate.
The Committee also received 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.
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
provided advice keeping the Committee up to date
on developments in executive pay and on the
operation of easyJet’s incentive plans. The total fees
paid to NBS in respect of service to the Committee
during the year were £143,000. NBS is a signatory
to the Remuneration Consultants’ Code of Conduct.
Aon plc also assisted easyJet with operating an
employee engagement survey. 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 2014 financial year?
What are the Executive Directors’ current salaries?
The Executive Directors’ salaries for the 2014
financial year are as follows:
1 January 20141
salary
1 October 2012
salary Change
CEO £681,600 £665,000 2.5%
CFO £420,250 £410,000 2.5%
1 To ensure consistency across the Group, salary increases are
effective from 1 January from 2014 onwards. This is now the
policy on an on-going basis.
How will annual performance be rewarded for
performance in the 2014 financial year?
The annual bonus for the 2014 financial year will
operate on the same basis as for 2013 financial year
and will be consistent with the policy detailed in the
Remuneration policy section of this report in terms
of the maximum bonus opportunity, deferral and
clawback provisions. The measures have been
selected to reflect a range of financial and
operational goals that support the key strategic
objectives of the Company.
The performance measures and weightings will
be as follows:
As a percentage of
maximum bonus
opportunity
Measure CEO CFO
Profit before tax 70% 60%
On-time performance 10% 10%
Customer satisfaction targets 10% 10%
Operating costs (excluding fuel)
per seat at constant currency 10% 10%
Departmental objectives – 10%
The proposed target levels for 2014 have been set
to be challenging relative to the 2014 business plan.
The targets themselves, as they relate to the 2014
financial year, are deemed to be commercially
sensitive. However, retrospective disclosure of
the targets and performance against them will
be provided in next year’s remuneration report to
the extent that they do not remain commercially
sensitive at that time. The safety of our customers
and people underpins all of the operational activities
of the Group and the bonus plan includes an
underpin that enables the Remuneration Committee
to scale back the bonus earned in the event that
there is a safety event that occurs that it considers
warrants the use of such discretion.