Stelios steps up pressure in battle with board

Published on Tuesday 31 January 2012 00:00

EASYJET founder Sir Stelios Haji-Ioannou yesterday stepped up the war of words with the airline’s board over pay by inviting directors to “resign any time” if they are opposed to efforts to rein in bonuses.

The board is preparing to use a ballot at next month’s AGM on remuneration as a “vote of confidence” after Stelios threatened to block a deal that would see ten executives awarded £8 million over three years. According to reports, board members could go so far as to resign if the vote does not go their way.

But Stelios yesterday poured cold water on the threat, saying the company could “easily replace them with talented executives and experienced non-executive directors who will cost half as much in bonuses”.

“We must take a stand against directors who seem to regard our company as their personal piggy bank,” he said. “The gravy train of £180m free shares issued over the past decade must end now.”

NATHALIE THOMAS

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BigglesFliesUndone

Wednesday, February 1, 2012 at 01:57 AM

Let me declare my interests at the outset - I am a pilot working for easyJet with a very vested interest in our future success. For a man who started so well, Stelios seems unusually determined to finish very badly. He is absolutely desperate to undermine his Chairman, Board and CEO at any cost. His complaints about £8m to be awarded to 10 executives over 3 years are a bit hollow, given that he himself is about to receive £71m in one hit from this year's dividend payout. I have not noticed any complaints about that, nor indeed the several million pounds he is destined to receive each year as part of the brand licensing dispute resolution. Furthermore, the majority of free shares he complains about actually went to ordinary employees like pilots and cabin crew - for which they are very grateful. The simple truth is that virtually no one at easyJet, from the lowest cleaner to the most senior manager, has the time of day for him. They are heartily sick of the constant carping and increasingly ludicrous comments emanating from Stelios's camp. For reasons best known to himself he is absolutely determined to saw off the branch of the tree is sitting on. He has become so obsessed with easyJet management (who incidentally have just returned the best on time performance and financial performance in the company's history), that he is unable to exercise rational judgement on this issue. The fact is that Board Chairman Sir Mike Rake, and CEO Carolyn McCall are doing a fantastic job despite an unusually difficult economic climate, and enjoy the widespread confidence of their staff. There is nothing they will ever be able to do to please him, and nor should they try. They could buy Stelios a bag of gold and it would be too heavy or a Ferrari and it would be the wrong colour. For the sake of the future well-being of a great Company, it is to be hoped that Stelios sells up quickly and goes back to Greece where there seems to be no shortage of opportunities for a 'serial entrepreneur' to really smash up the family china.

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