EasyJet’s board says it will discuss with shareholders their concerns about directors pay after more than a quarter voted against the airline’s remuneration policy.
Just 73% voted to approve the directors’ remuneration policy while 27% voted against at today’s annual general meeting.
A quarter of shareholders also voted against the easyJet Restricted Share Plan and 21% failed to support the airline’s decision to authorise the directors to allot shares.
However, all resolutions were passed with the requisite majority at the AGM.
After the meeting, easyJet said it noted the votes against the resolutions.
It added: “The Remuneration Committee undertook a thorough review of remuneration arrangements prior to the AGM, including consulting with major shareholders and employee representatives, and concluded that replacing the LTIP (long-term incentive plan) with a Restricted Share Plan was the best approach going forward.
“The Board believes that the updated Remuneration Policy will not only support long term strategic decision-making and help retain and motivate management to drive the performance of the business as we continue to recover from the pandemic, but will also support the longer term performance of the business including delivering sustainable shareholder value.”
It also said that the directors don’t have any intention to exercise their authority to allot shares, but said they ‘consider it appropriate to maintain the flexibility that this authority provides’.
The airline added: “In accordance with the UK Corporate Governance Code, the Board will continue its engagement with shareholders to discuss their concerns on the above resolutions.”