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EasyJet silent on special dividend rumours

EasyJet has declined to comment on weekend reports suggesting it is considering paying a one-off special dividend in November to cool a dispute with founder and largest shareholder Sir Stelios Haji-Ioannou.

Analysts think the one-off payoff could be as high as £100 million, meaning £38 million for Haji-Ioannou and his family, who own a 38% stake, The Sunday Times reported.

The budget airline has never paid a dividend in its 11-year history as a quoted company.

The dividend debate is the latest twist in a long-running battle between easyJet’s board and management and its founder.

Sir Stelios has criticised the speed of the company’s expansion, argued over the use of the ‘easy’ brand name and demanded cash be returned to shareholders.

EasyJet said last week that deputy chairman Sir David Michels would leave the board immediately rather than at the end of the year as planned.

The company said he had decided to leave early to avoid the expense of calling an extraordinary meeting requested by Sir Stelios, who is expected to announce “further steps to protect shareholder value” this week.

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