Airline easyJet secured backing for its pay plans and chairman’s re-election, despite opposition from founder Sir Stelios Haji-Ioannou amid a row over strategy.
The entrepreneur, who with his family holds 37% of easyJet’s shares, voted against the re-election of Sir Mike Rake as non-executive chairman, as well as the board’s remuneration report at the airline’s annual general meeting in Luton.
But the carrier narrowly avoided having its plans opposed after 55.3% of votes cast were in favour of its pay report, while 55.6% supported Sir Mike’s re-appointment.
Sir Stelios, who failed in attempts to oust Sir Mike at meetings in August and last February, has been at loggerheads with the easyJet board over the company’s plans to place a large order for a fleet of more fuel-efficient aircraft. He believes the new planes are not necessary and will be acquired at the detriment of shareholders.
Sir Stelios is also unhappy that Sir Mike is seeking re-election, given that he announced last month he will leave the company in the summer because easyJet’s expected promotion to the FTSE 100 Index will conflict with his role as chairman of another blue-chip company, BT Group.
Sir Mike said on announcing his planned departure that he wanted to remain in post to ensure a smooth handover and give the firm time to find a replacement.
Addressing shareholders at the AGM, Sir Mike said he and Sir Stelios had agreed on strategy when he took on the role of chairman nearly four years ago.
He said: “When I met with Sir Stelios in the spring of 2009 to discuss taking on the chairmanship of the company I was clear that we needed to amend the shareholder agreement, introduce a new brand agreement, bring in new management and refresh the board, as well as, at the right moment, to commence dividend payments.
“I was also very clear that, given the economic uncertainty at that time, we should move to a moderate from high growth strategy; something with which Stelios and I both agreed and both voted for in the board meeting in June 2009 after I had joined the board.”
Shares in easyJet have soared to their highest level since its stock market flotation in 2000 after the airline posted better-than-expected results last month.