Stelios resigning from Easyjet ???
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Stelios to stand down from Easyjet
Yes he will be standing down as managing director at Easyjet in 2003.
But he will be the main share holder of the company.
How could this affect the company?
But he will be the main share holder of the company.
How could this affect the company?
ex-Tanker
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According to easyJet's own detailed and very honest shareholder information brochure, if Stelios were to leave it could cause a loss of confidence - the reason being that he has always been strongly identified with the brand.
Personally I would expect the news to sink in slowly, as there is a lead time here and a lot will depend upon how Stelios presents his case.
Personally I would expect the news to sink in slowly, as there is a lead time here and a lot will depend upon how Stelios presents his case.
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From the easyJet website:
easyJet PLC restructures Board to further enhance corporate governance
Stelios intends to resign as Chairman at 2003 AGM; Sir Colin Chandler appointed Deputy Chairman.
easyJet PLC, the leading European low-cost airline, today announces significant changes to the composition and structure of its Board, following representations made by institutional investors.
Since the IPO in November 2000, easyJet has grown rapidly, both in terms of its operation and market capitalisation. Recent announcements have confirmed easyJet's intention to continue its growth and the company wishes to ensure that its Board has the appropriate structure and composition for a major listed company, whilst reflecting the highest standard of corporate governance.
The changes are:
Stelios Haji-Ioannou intends to resign as Chairman of easyJet PLC at the next Annual General Meeting in 2003. Sir Colin Chandler has been appointed as Deputy Chairman, with immediate effect, with the intention to succeed Stelios as Chairman at that AGM. As a result, the Chairman will be independent from the controlling shareholders.
All current executive directors, with the exception of the Chief Executive and the Finance Director, will resign from the PLC Board and continue or become directors of easyJet Airline Company Ltd, a wholly-owned subsidiary of the PLC and the company which holds the Air Operators Certificate. As a result, the majority of directors of easyJet PLC will be independent.
Stelios Haji-Ioannou said:
"Since the IPO, easyJet has gone from strength to strength and, as the recent Trading Statement revealed, I am very confident about its prospects. The company has a strong management team led by Ray Webster, the Chief Executive, who has been with easyJet from the beginning and who has been running the company for the last couple of years.
"I am convinced that Ray and his team can continue this strong progress and this is the appropriate time to plan my stepping-down from the easyJet Board in order to concentrate on my new ventures.
"I intend to remain a significant shareholder of this company for a very long time. However, as I have made clear on several occasions in the past, I have no other source of income from easyJet other than disposal of shares and, as I engage in new ventures, I may need to liquidate some of my stock from time to time. As I have said before, I need to sell my past to finance my future.
"It is the sign of maturity in a young company to have a chairman who is independent from the controlling shareholders and I am delighted that Sir Colin Chandler has accepted our invitation to the join the Board. His long experience in the aerospace industry and track-record in running major blue-chip public companies will be invaluable to easyJet as it continues to grow.
"Starting a company requires a very different skill set to those needed to chair a major PLC and I consider my strengths are in the former - I am a serial entrepreneur. The history of the City is littered with entrepreneurs who held onto their creations for too long, failing to recognise the changing needs of the company, its business and its shareholders. I took note of the concerns of institutional investors and I want to ensure the company abides by the highest standards of corporate governance."
Sir Colin Chandler, said:
"To be invited to join the Board of easyJet with a view to becoming Chairman is a big honour for me as the company embarks on the next stage of its development.
"This is a bold and important move for both easyJet and Stelios. To stand-down as the Chairman of a company that Stelios has created speaks volumes about his commitment to the very highest standards of corporate governance and long-term shareholder value. I look forward to working alongside and learning from him until the next AGM."
notes
Stelios' intention to resign
To effect the changes provided for in paragraph 1 above, appropriate changes will have to be made in the Relationship Agreement between easyGroup, Stelios and easyJet, including the rights to appoint directors, the Brand License Agreement and the Articles of Association of easyJet. These will be completed at or before the next AGM.
Sir Colin Chandler: biographical notes
Sir Colin Chandler is currently Chairman of Vickers Defence Systems, a subsidiary of Rolls-Royce PLC, Deputy Chairman of Smiths Group PLC (a FTSE100 company), and a director of Thales PLC, the UK subsidiary of the French aerospace, defence and IT company Thales SAe.
He is Pro-Chancellor of Cranfield University.
He was formerly Chairman and CEO of Racal Electronics (1999-2000); a director of Guardian Royal Exchange (1995-1999) and from 1990-1999 he was variously Managing Director, Chief Executive and Chairman of Vickers PLC.
In his earlier career, he held various posts at British Aerospace PLC and its predecessor companies and undertook a four-and-a-half secondment to the Ministry of Defence.
He was knighted in June 1988 for services to export.
easyJet PLC confirms that there are no other details which require to be disclosed under paragraph 6F.2b)-g) of the UKLA Listing Rules with respect to Sir Colin Chandler
The easyJet PLC Board previously consisted of:
Stelios Haji-Ioannou Chairman
Tony Illsley Senior Non-Executive Director1
Colin Day Non-Executive Director1
Amir Eilon Non-Executive Director
Nick Hartley Non-Executive Director
Diederik Karsten Non-Executive Director1
John Quelch Non-Executive Director1
Ray Webster Chief Executive
Mike Cooper Commercial Director
Vilhelm Hahn-Petersen Operations Director
Keith McMann Airports Director
Chris Walton Finance Director
The easyJet PLC Board now consists of:
Stelios Haji-Ioannou Chairman
Sir Colin Chandler Deputy Chairman1
Tony Illsley Senior Non-Executive Director1
Colin Day Non-Executive Director1
Amir Eilon Non-Executive Director
Nick Hartley Non-Executive Director
Diederik Karsten Non-Executive Director1
John Quelch Non-Executive Director1
Ray Webster Chief Executive
Chris Walton Finance Director
easyJet PLC restructures Board to further enhance corporate governance
Stelios intends to resign as Chairman at 2003 AGM; Sir Colin Chandler appointed Deputy Chairman.
easyJet PLC, the leading European low-cost airline, today announces significant changes to the composition and structure of its Board, following representations made by institutional investors.
Since the IPO in November 2000, easyJet has grown rapidly, both in terms of its operation and market capitalisation. Recent announcements have confirmed easyJet's intention to continue its growth and the company wishes to ensure that its Board has the appropriate structure and composition for a major listed company, whilst reflecting the highest standard of corporate governance.
The changes are:
Stelios Haji-Ioannou intends to resign as Chairman of easyJet PLC at the next Annual General Meeting in 2003. Sir Colin Chandler has been appointed as Deputy Chairman, with immediate effect, with the intention to succeed Stelios as Chairman at that AGM. As a result, the Chairman will be independent from the controlling shareholders.
All current executive directors, with the exception of the Chief Executive and the Finance Director, will resign from the PLC Board and continue or become directors of easyJet Airline Company Ltd, a wholly-owned subsidiary of the PLC and the company which holds the Air Operators Certificate. As a result, the majority of directors of easyJet PLC will be independent.
Stelios Haji-Ioannou said:
"Since the IPO, easyJet has gone from strength to strength and, as the recent Trading Statement revealed, I am very confident about its prospects. The company has a strong management team led by Ray Webster, the Chief Executive, who has been with easyJet from the beginning and who has been running the company for the last couple of years.
"I am convinced that Ray and his team can continue this strong progress and this is the appropriate time to plan my stepping-down from the easyJet Board in order to concentrate on my new ventures.
"I intend to remain a significant shareholder of this company for a very long time. However, as I have made clear on several occasions in the past, I have no other source of income from easyJet other than disposal of shares and, as I engage in new ventures, I may need to liquidate some of my stock from time to time. As I have said before, I need to sell my past to finance my future.
"It is the sign of maturity in a young company to have a chairman who is independent from the controlling shareholders and I am delighted that Sir Colin Chandler has accepted our invitation to the join the Board. His long experience in the aerospace industry and track-record in running major blue-chip public companies will be invaluable to easyJet as it continues to grow.
"Starting a company requires a very different skill set to those needed to chair a major PLC and I consider my strengths are in the former - I am a serial entrepreneur. The history of the City is littered with entrepreneurs who held onto their creations for too long, failing to recognise the changing needs of the company, its business and its shareholders. I took note of the concerns of institutional investors and I want to ensure the company abides by the highest standards of corporate governance."
Sir Colin Chandler, said:
"To be invited to join the Board of easyJet with a view to becoming Chairman is a big honour for me as the company embarks on the next stage of its development.
"This is a bold and important move for both easyJet and Stelios. To stand-down as the Chairman of a company that Stelios has created speaks volumes about his commitment to the very highest standards of corporate governance and long-term shareholder value. I look forward to working alongside and learning from him until the next AGM."
notes
Stelios' intention to resign
To effect the changes provided for in paragraph 1 above, appropriate changes will have to be made in the Relationship Agreement between easyGroup, Stelios and easyJet, including the rights to appoint directors, the Brand License Agreement and the Articles of Association of easyJet. These will be completed at or before the next AGM.
Sir Colin Chandler: biographical notes
Sir Colin Chandler is currently Chairman of Vickers Defence Systems, a subsidiary of Rolls-Royce PLC, Deputy Chairman of Smiths Group PLC (a FTSE100 company), and a director of Thales PLC, the UK subsidiary of the French aerospace, defence and IT company Thales SAe.
He is Pro-Chancellor of Cranfield University.
He was formerly Chairman and CEO of Racal Electronics (1999-2000); a director of Guardian Royal Exchange (1995-1999) and from 1990-1999 he was variously Managing Director, Chief Executive and Chairman of Vickers PLC.
In his earlier career, he held various posts at British Aerospace PLC and its predecessor companies and undertook a four-and-a-half secondment to the Ministry of Defence.
He was knighted in June 1988 for services to export.
easyJet PLC confirms that there are no other details which require to be disclosed under paragraph 6F.2b)-g) of the UKLA Listing Rules with respect to Sir Colin Chandler
The easyJet PLC Board previously consisted of:
Stelios Haji-Ioannou Chairman
Tony Illsley Senior Non-Executive Director1
Colin Day Non-Executive Director1
Amir Eilon Non-Executive Director
Nick Hartley Non-Executive Director
Diederik Karsten Non-Executive Director1
John Quelch Non-Executive Director1
Ray Webster Chief Executive
Mike Cooper Commercial Director
Vilhelm Hahn-Petersen Operations Director
Keith McMann Airports Director
Chris Walton Finance Director
The easyJet PLC Board now consists of:
Stelios Haji-Ioannou Chairman
Sir Colin Chandler Deputy Chairman1
Tony Illsley Senior Non-Executive Director1
Colin Day Non-Executive Director1
Amir Eilon Non-Executive Director
Nick Hartley Non-Executive Director
Diederik Karsten Non-Executive Director1
John Quelch Non-Executive Director1
Ray Webster Chief Executive
Chris Walton Finance Director
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STELIOS Haji-Ioannou plans to bail out EasyJet
The flamboyant founder of no-frills airline easyJet, yesterday bowed to investor pressure and announced his intention to step down as chairman.
Haji-Ioannou's departure, scheduled to take effect following the next annual meeting in March 2003, marks the end of an era for the company he founded in 1995 with a £5m loan from his Greek shipping tycoon father.
The announcement sent easyJet shares plummeting 15.5p to close at 508.5p, valuing the business at about £1.3bn.
The pressure to resign came primarily from a single institutional shareholder, the Co-operative Insurance Society (CIS), which although it owns less than 1% of the company's stock, remains one of easyJet's largest institutional shareholders.
A spokeswoman for CIS said the company was unhappy with the fact that Haji-Ioannou and his family owns almost 60% of easyJet's shares. Haji-Ioannou himself is the majority shareholder, with a 28% stake in the firm.
"It's all about corporate governance," the spokeswoman said. "A majority shareholder should not be chairman of the board."
Haji-Ioannou said he agreed with the concerns, but denied he had been forced out. He said his departure was part of a wider boardroom shuffle which would result in the majority of easyJet's directors being independent.
"I am doing it voluntarily. Nobody has forced me to do this. I am driving this," he said.
Haji-Ioannou will now focus on his chain of internet cafes and car rental business, and is planning to launch cheap films through easyCinema.
The 35-year-old and his family will retain their stake in easyJet, but Haji-Ioannou said: "As I engage in new ventures, I may need to liquidate some of my stock from time to time. As I have said before, I need to sell my past to finance my future."
As chairman, Haji-Ioannou's share dealings would come under close scrutiny because of his intimate knowledge of the low-cost airline.
He added: "The history of the City is littered with entrepreneurs who hold on to their creations for too long, failing to recognise the changing needs of the company, its business and its shareholders."
An analyst at Merrill Lynch said Haji-Ioannou was admitting his skills as an entrepreneur were different to those required to chair a major company.
"On the operation front, there is no change to the business and it should be noted that easyJet has been run by Ray Webster as CEO for the past two years," the analyst said.
CIS welcomed Haji-Ioannou's departure announcement. Its chief investment manager, Chris Hirst, said: "We are delighted that easyJet has committed itself to having a board with a structure and composition appropriate for a major listed company."
Sir Colin Chandler, a 61-year-old City veteran, has been appointed deputy chairman and will succeed Haji-Ioannou.
source AV News
Haji-Ioannou's departure, scheduled to take effect following the next annual meeting in March 2003, marks the end of an era for the company he founded in 1995 with a £5m loan from his Greek shipping tycoon father.
The announcement sent easyJet shares plummeting 15.5p to close at 508.5p, valuing the business at about £1.3bn.
The pressure to resign came primarily from a single institutional shareholder, the Co-operative Insurance Society (CIS), which although it owns less than 1% of the company's stock, remains one of easyJet's largest institutional shareholders.
A spokeswoman for CIS said the company was unhappy with the fact that Haji-Ioannou and his family owns almost 60% of easyJet's shares. Haji-Ioannou himself is the majority shareholder, with a 28% stake in the firm.
"It's all about corporate governance," the spokeswoman said. "A majority shareholder should not be chairman of the board."
Haji-Ioannou said he agreed with the concerns, but denied he had been forced out. He said his departure was part of a wider boardroom shuffle which would result in the majority of easyJet's directors being independent.
"I am doing it voluntarily. Nobody has forced me to do this. I am driving this," he said.
Haji-Ioannou will now focus on his chain of internet cafes and car rental business, and is planning to launch cheap films through easyCinema.
The 35-year-old and his family will retain their stake in easyJet, but Haji-Ioannou said: "As I engage in new ventures, I may need to liquidate some of my stock from time to time. As I have said before, I need to sell my past to finance my future."
As chairman, Haji-Ioannou's share dealings would come under close scrutiny because of his intimate knowledge of the low-cost airline.
He added: "The history of the City is littered with entrepreneurs who hold on to their creations for too long, failing to recognise the changing needs of the company, its business and its shareholders."
An analyst at Merrill Lynch said Haji-Ioannou was admitting his skills as an entrepreneur were different to those required to chair a major company.
"On the operation front, there is no change to the business and it should be noted that easyJet has been run by Ray Webster as CEO for the past two years," the analyst said.
CIS welcomed Haji-Ioannou's departure announcement. Its chief investment manager, Chris Hirst, said: "We are delighted that easyJet has committed itself to having a board with a structure and composition appropriate for a major listed company."
Sir Colin Chandler, a 61-year-old City veteran, has been appointed deputy chairman and will succeed Haji-Ioannou.
source AV News
Paxing All Over The World
i read this in The Independent yesterday. Stelios is being very sensible. Most start-up bosses get ditched by the City. he is going before he gets pushed.
He also stated his intention to steadily reduce the family shareholding to be low 50%, currently around 63%. he will use this to fund other projects that are still losing money or to start further new ones.
The paper pointed out that journalists attending the briefing at easyJet at LTN - had to buy their own coffee!!! There's one for MOL to learn.
He also stated his intention to steadily reduce the family shareholding to be low 50%, currently around 63%. he will use this to fund other projects that are still losing money or to start further new ones.
The paper pointed out that journalists attending the briefing at easyJet at LTN - had to buy their own coffee!!! There's one for MOL to learn.
