EasyJet 2013 Annual Report Download - page 85

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www.easyJet.com 83
Governance
A sliding scale of targets for each objective was
set at the start of the financial year. 10% of each
element is payable for achieving the threshold
target, increasing to 50% for on-target performance
and 100% for achieving maximum performance.
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
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.
No such event occurred in 2012/13.
%
25
50
75
100
94
11.7
61.7
100
OTP
Cost per seat (ex. fuel)
Customer satisfaction
Profit before tax
Annual bonus
The following chart shows the performance against
bonus targets for 2013:
How was pay linked to performance in 2013?
As a percentage of
maximum bonus opportunity Performance required Actual Payout
Measure CEO CFO Threshold On-Target Maximum
Profit before tax (£m) 70% 60% 283 315 362 478 100%
On-time performance 10% 10% 80% 83% 88% 87% 94%
Customer satisfaction targets110% 10% 77% 82% 85% 83% 62%
Cost per seat (ex. fuel)210% 10% £36.82 £36.59 £36.24 £36.81 11.7%
Departmental objectives – 10% Successful Exceeding Outstanding Outstanding 100%
1 easyJet changed survey provider during the year and future targets will be set on the basis of a different survey provided by Milward Brown. For future
reference, the correlated customer satisfaction scores for achievement and targets above, on the basis of the new provider, would be: 80.4% achieved
versus targets of 74.8% threshold, 79.7% on target and 82.6% stretch.
2 Cost per seat (excluding fuel) targets are at constant (plan) currency.
What did the Directors earn in relation to the 2013 financial year?
We have set out the amount earned by the Directors in the table below (£000) (Audited):
2013 2012
£’000
Fees and
Salary Benefits3Bonus4LTIP5Pension6Total
Fees and
Salary Benefits Bonus LTIP Pension Total
Executive
Carolyn McCall OBE 665 5 1,153 4,565 47 6,435 665 5 1,274 1,703 47 3,694
Chris Kennedy 410 5 533 2,746 30 3,724 400 5 373 1,024 29 1,831
Non-Executive
John Barton1125––––125 ––––––
Sir Michael Rake2175––––175300––––300
Charles Gurassa 90––––9085––––85
David Bennett 75––––7565––––65
Rigas Doganis 63––––6355––––55
John Browett 55––––5555––––55
Keith Hamill OBE 55––––5560––––60
Adèle Anderson 55––––5555––––55
Andy Martin 55––––5555––––55
Total 1,823 10 1,686 7,311 77 10,907 1,795 10 1,647 2,727 76 6,255
1 Appointed to the Board on 1 May 2013
2 Retired from the Board on 1 May 2013
3 Benefits relates to the cost to the Company of personal accident and life assurance cover and the value of free and matching shares during the year
under the Company’s Share Incentive Plan.
4 One third of the bonus will be compulsorily deferred in shares for three years and subject to forfeiture. Carolyn McCall chose to defer the maximum 50%
of her bonus and Chris Kennedy chose to defer the maximum one third of his bonus.
5 This relates to the 2011 LTIP awards which vests in March 2014 based on performance measured to 30 September 2013. For the purposes of this table, the
award has been valued using the average share price over the three months to 30 September 2013 of £13.254. This compares to £3.379 at grant.
6 Chris Kennedy received £1,315 in exchange for sacrificing salary into the pension scheme, in line with easyJet’s SMART pension arrangements. Carolyn McCall has
reached her lifetime pension limit and receives a cash alternative (of £47,000) in lieu of pension contributions.