31st Jan 12
Stelios blasts easyJet bonuses
by Adam Richards
Easy street: Stellos says tops execs could easily be replaced
Easy street: Stellos says tops execs could easily be replaced
Sir Stelios Haji-Ioannou, the founder of easyJet, has denounced the airline’s executives over the size of their bonuses.
Sir Stelios, whose family has a stake of 38 per cent in the carrier, has tabled a motion for the annual meeting in February blocking a proposed pay deal. However, press reports have indicated that the board may resign en masse should shareholders agree.
Speaking out against the “gravy train” of large companies, Sir Stelios said that these people are welcome to resign whenever they like. He insisted that they could easily be replaced with talented executives and non-executive directors with experience who will cost half the amount in bonuses.
The airline’s directors have put a pay deal forward which could see 10 senior executives be awarded £8m worth of shares over three years should certain targets be met. Sir Stelios said that they must stand up to directors who view the company as a personal piggy bank which they can dip into whenever they please.
He insisted the gravy chain which saw £180m in free shares be handed out over the last 10 years needs to come to an end immediately. He said that, in simple terms, if shareholders are able to vote down easyJet bonuses, then the same will happen in all listed companies. He added that this would be good for both shareholders and pensioners who have invested their pensions in these companies.
A spokesman for easyJet said that classing the £180m as directors’ bonuses was unfair. He explained that most of those shares were awarded to staff of the airline including pilots and cabin crew after the company floated, adding that the total also includes popular staff schemes like save as you earn.
Major firms’ bonuses have continued to spark controversy, with the latest example being at the Royal Bank of Scotland. Stephen Hester, the lender’s chief executive, will not take this year’s annual bonus worth almost £1m.
The chief executive of easyJet, Carolyn McCall, earned a total of £1.5m last year in her first year in the position, including bonuses worth £840,000. The low-cost carrier saw a rise in revenues of 16.7 per cent during the final three months of last year as passenger numbers increased by 8.1 per cent.
Sir Stelios, who founded the airline in 1995, stepped down from easyJet’s board in 2010 following a row over strategy. However, he and his family have kept hold of a large number of shares in the airline. He is also against the carrier’s decision to purchase new planes from Airbus.
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