Sir Stelios reignites easyJet feud in fury over remuneration
Friday 11 February 2011
The rapprochement between Sir Stelios Haji-Ioannou and easyJet proved all too brief yesterday when the airline's founder said he would vote down the £1m pay deal for its former chief executive Andrew Harrison at next week's annual meeting.
Mr Harrison left the airline last year after a dispute with Sir Stelios over easyJet's growth strategy and the rights to the "easy" name. Since his departure, Sir Stelios and the new chief executive, Carolyn McCall, appeared to be building bridges, agreeing a deal to settle the brand dispute last October.
But the feud with Mr Harrison re-surfaced yesterday. Sir Stelios – whose family still controls 38 per cent of easyJet – wrote to the chairman, Sir Michael Rake, to say he would vote against measures to pay Mr Harrison a £750,000 salary and £250,000 bonus for the period from April to September last year, despite his leaving at the end of June.
"I was not consulted on this package, either as a director or as a shareholder, as is customary with major shareholders," Sir Stelios said in his letter, accusing Mr Harrison of using the dispute to give himself "the upper hand" in his own pay negotiations.
The feud between Sir Stelios and Mr Harrison peaked last summer when the easyJet founder described the chief executive as "over-rated" and resigned from the board to pursue the matter as an activist shareholder.
Sir Stelios was no more forgiving in his letter to Sir Michael yesterday. He "favourably acknowledged" current executives' decisions to waive their bonuses in response to "the mess that the company was in last summer" because of crew shortages. But he blamed those shortages on decisions made by Mr Harrison the previous winter in an effort to boost the quarterly numbers without regard to the longer term consequences.
Mr Harrison said: "As CEO of easyJet my job was to implement the strategy agreed by the board. All aspects of my remuneration were determined by the remuneration committee and to the best of my knowledge were communicated to the full board."
- 1 What happens to your body when you give up sugar?
- 2 Drugs Live cannabis trial: Hash is less harmful than any other drug, expert claims
- 3 Have sex with your iPad thanks to the new sex toy no-one asked for
- 4 African jawbone discovery pushes birth of humanity back by 400,000 years
- 5 The 'sex selfie stick' lets you FaceTime the inside of a vagina
Out-of-touch MPs ‘don’t get it’, says ex-Civil Service chief
George Clooney and Amal fail to get special treatment at New York restaurant
'A girl is more responsible for rape than a boy': The statement that shocked the world... except India
African jawbone discovery pushes birth of humanity back by 400,000 years
The 'sex selfie stick' lets you FaceTime the inside of a vagina
Durham Free School: 'Creationism taught at' free school facing closure
Nearly 100,000 of Britain's poorest children go hungry after parents' benefits are cut
Ukip would cut billions from Scottish budget to fund English tax cuts
End of the licence fee: BBC to back radical overhaul of how it is funded
Ukraine crisis: Top Chinese diplomat backs Putin and says West should 'abandon zero-sum mentality'
Boris Nemtsov shot dead: Outspoken Putin critic who had expressed fears for his life is killed near the Kremlin
iJobs Money & Business
£8 per hour: Recruitment Genius: This Pension Specialist was established early...
£30 - 35k + Bonus & Benefits: Guru Careers: We are seeking an Executive Assist...
£25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...
Voluntary post, reasonable expenses reimbursed: Reach Volunteering: Would you ...