(Alliance News) - easyJet PLC on Wednesday reported that all resolutions at its annual general meeting passed, though motions to re-elect several directors, including the carrier's chair and chief executive, were faced with sizeable investor opposition.
The company also updated on its post-Brexit transition period contingency plan, aimed at ensuring the company is majority owned by shareholders based in EU, in line with the trading bloc's rules for airlines.
Motions to re-elect Non-Executive Chair John Barton and Chief Executive Officer Johan Lundgren passed, despite just shy of 43% shareholders voting against the proposals.
Chief Financial Officer Andrew Findlay's re-election was rejected by 42% of voters, though also still passed.
The re-election of Non-Executives Andreas Bierwirth, Catherine Bradley, Nick Leeder and Senior Independent Director Julie Southern all passed, despite more than 40% of shareholders rejecting the motions.
Motions to appoint Moni Mannings and David Robbie both faced dissent from just under 43% of voters.
The slim victory for the easyJet board comes amid criticism from founder and largest shareholder Stelios Haji-Ioannou.
On Tuesday, easyJet agreed with Airbus SE to defer the delivery of aircraft that had been scheduled for the 2022 to 2024 financial years.
A total of 22 aircraft will be moved to the 2027 to 2028 financial years, and there will also be the movement of 15 delivery dates within the 2022 to 2024 to match forecast seasonal requirements more closely.
easyJet's contractual commitments to Airbus has been a source of conflict with Haji-Ioannou, who tried to have the board and senior executive team ousted over the issue back in May.
easyJet added on Wednesday: "The board notes that while resolutions 4 to 8 and 10 to 13 were passed with the necessary majority, they received less than 58% in favour. In accordance with the UK Corporate Governance Code the board will continue to engage with shareholders to discuss their concerns but understands that this was predominantly as a result of the company's largest shareholder (and its related parties) voting against these resolutions."
Also on Wednesday, easyJet updated on its planned contingency plan ahead of the end of the UK's Brexit transitional period with the EU.
Under EU rules, carriers which operate inside the trading bloc must be majority owned by shareholders based in the EU, Switzerland, Norway, Iceland or Liechtenstein.
The company said its current level of ownership by shareholders in the EU and the other four nations is just over 47%. As a result, easyJet said it expects to suspend the voting rights of some non-EU shareholders after the transition period.
easyJet shares were 5.3% higher at 815.87 pence each in London on Wednesday afternoon.
By Eric Cunha; ericcunha@alliancenews.com
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