EasyJet CEO Carolyn McCall received more than £7m last year

Easyjet Close Up

The chief executive of easyJet, Carolyn McCall, was paid £7.68m last year, with more than £7m coming in bonuses.

McCall was paid a salary of £665,000 by the budget airline and an annual bonus of £1.15m for 2013-2014, with a share award worth £5.9m.

The airline’s chief financial officer, Chris Kennedy, was paid just over £4m.

EasyJet’s founder and biggest shareholder, Sir Stelios Haji-Ioannou, who voted last year against the company’s remuneration report, has yet to comment. But the ire of the man who has frequently railed against the board has been dampened by two years of dividend payouts totalling more than £200m.

EasyJet flew 64.8 million passengers in the year to 30 September 2014 and recorded profits before tax of £581m. It paid £131m in tax, including £99m corporation tax.

An EasyJet spokesman said: “EasyJet’s remuneration for directors is heavily weighted towards variable pay, dependent on performance. This ensures that there is a clear link between the value created for shareholders and the amount paid to directors.

“Passengers have also benefited with reduced average fares year on year and on-time performance of 85% for arrivals within 15 minutes.

“Carolyn McCall’s remuneration reflects easyJet’s record profits, returns and share price rise. EasyJet’s remuneration policy is constantly reviewed to ensure it is aligned with easyJet’s principles and with institutional investors’ best practice expectations and is in line with companies of similar size and turnover in the FTSE 100.”

The report reveals that McCall’s reported pay package of £6.4m for 2013 ended up being £7.8m when her share award vested. EasyJet’s accounts base the value of McCall’s share award for 2014 on an average share price, which is 30% lower than the current price. The company’s current value could push her overall rewards over £9.5m in January when the shares pay out.

Powered by Guardian.co.ukThis article was written by Gwyn Topham, transport correspondent, for The Guardian on Friday 5th December 2014 13.27 Europe/London

guardian.co.uk © Guardian News and Media Limited 2010

 

JefferiesAnd the Best Place to Work in the global financial markets 2016 is...

Register for Financial Markets News Alerts