Easyjet has defeated an attempt by its founder Sir Stelios Haji-Ioannou to vote down pay plans for the airline’s bosses.
Haji-Ioannou, who owns 37 per cent of the airline with other members of family, voted against Easyjet’s remuneration report at the company’s annual general meeting in Luton today (February 21).
But the pay plan was approved by 55.3 per cent of shareholders with 44.7 voting against the resolution.
Haji-Ioannou has been at loggerheads with Easyjet’s board for several years over orders for new aircraft from Airbus. The entrepreneur wants more cash to be given to shareholders in the form of higher dividends instead.
Haji-Ioannou, who founded Easyjet in 1995, also voted against the re-election of chairman Sir Michael Rake. But this resolution was also passed by 55.6 per cent to 44.4 per cent. Rake is due to step down this summer from his role with Easyjet but this has not appeased Haji-Ioannou.
“He (Rake) resigned on the January 27, 2013, but yet he wants to stay on for another six months. Therefore he has no long-term accountability for his actions,” said Haji-Ioannou in a written explanation of his intention to vote against Rake’s re-election at the AGM.
“We do not believe directors, who have resigned should be allowed to commit any company to a major programme of capital expenditure that will burden the company for five to 10 years after their departure.”
Rake said that he had agreed with Haji-Ioannou in 2009 that Easyjet should “move to a moderate from high-growth strategy”.
He added: “This has created the basis for a spectacular return for the company's shareholders as Carolyn (McCall – Easyjet’s chief executive) and her management team have done an outstanding job in executing the company's strategy, including utilising the flexibility given by the framework agreement with Airbus in 2002 to continue the very successful move towards A320 aircraft and the conversion of the 15 options in January 2011 both of which have contributed to the strong performance of the company.”