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Pay soars for EasyJet boss McCall

The pay package for easyJet boss Carolyn McCall has risen sharply on the back of pre-tax profits soaring 51% to £478 million in the year to September.

The budget carrier’s chief executive almost doubled her pay to £6.44 million in 2013.

Around £4.2 million of her overall pay was in shares under a long-term incentive plan. McCall was also paid a £1.15 million bonus, the Guardian reported.

EasyJet’s chief financial officer Chris Kennedy more than doubled his rewards to £3.74 million, including £2.74 million in long-term incentive payments.

McCall’s total remuneration was reported by the budget airline under new rules introduced by business secretary Vince Cable in September that require publication of chief executive earnings in simple terms.

An easyJet spokesman said her rewards reflected a surging share price and performance over the last three years.

He said average salary across the airline was £62,000 and that pay was designed with “a clear link between the value created for shareholders and the amount paid to EasyJet’s directors”.

The spokesman told the newspaper: “Shareholders have shared in this success through a 120% rise in the share price during the financial year. Dividends of £85 million were paid during the year and easyJet has recently recommended to shareholders the payment of dividends totalling £308 million to be paid in March 2014.

“EasyJet’s pay strategy is constantly reviewed to ensure it is in line with companies of similar size and turnover in the FTSE 100 and is based on investors’ best practice guidance and reflects consultation with our major shareholders. EasyJet is committed to maintaining an open and transparent dialogue with shareholders.”

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