26 Oct 2016 10:34
Flybe Group plc ("Flybe" or "the Company")
Directorate Change
Flybe today announces that Saad Hammad has by mutual agreement stepped down from his role as Chief Executive Officer of Flybe with immediate effect. The Board recognises the substantial contribution Saad Hammad has made and both the board and Saad believe it is time for a new Chief Executive Officer to lead the next phase of Flybe's long-term development.
A search has commenced for a new Chief Executive Officer. Simon Laffin, Non-executive Chairman, has assumed the role of Executive Chairman until a new CEO is appointed.
Saad Hammad joined Flybe in August 2013 and has led the significant transformation of Flybe into the regional airline it is today - a focused regional airline with a strong balance sheet, robust operations and an excellent customer proposition.
Flybe will announce its half-year results for the period to 30th September 2016 on 9th November 2016.
Simon Laffin, Executive Chairman, said;
"The Board would like to thank Saad for his energy and drive which has been a major contributor towards Flybe's transformation over the last three years. He mapped out a clear vision for the Group and led it to a significantly stronger position. We wish him well for his next challenge.
Whilst the whole aviation industry faces a challenging market environment, Flybe remains well placed. Our strategy remains to focus on regional routes and to provide an excellent service to our customers."
Saad Hammad said;
"I am very proud of what we have achieved over the last three years with a major turnaround in Flybe. Now is the right time for me to move on to a fresh challenge. I would like to thank all company employees for their hard work, passion and commitment and wish them all the best."
Certain information contained in this announcement would have constituted inside information (as defined by Article 7 of Regulation (EU) No 596/2014) prior to its release as part of this announcement.
Enquiries:
Flybe
Simon Laffin, Executive Chairman
Tel: +44 (0)20 7379 5151
Maitland
Neil Bennett Andy Donald
Tel: +44 (0)20 7379 5151
Notes: Key compensation arrangements for Saad Hammad
The following information is provided in accordance with section 430(2B) of the Companies Act 2006.
Mr Hammad is entitled to 12 months' notice from the Company under his service agreement and will therefore continue to receive his salary (£433,500) and other benefits until the 25th October 2017. He will be on garden leave until this date. During his notice period he will be available to ensure an orderly transition.
The Flybe Group plc Remuneration Committee (the Committee) has determined that the following terms will relate to Mr Hammad's departure, which are consistent with the Directors' remuneration policy, Mr Hammad's service agreement and his statutory employment rights:
1. Compensation
Mr Hammad will be paid £30,000 in compensation of lost benefits and in consideration of a waiver of his statutory employment rights.
2. Discretionary Annual Bonus
Mr Hammad's award under the Company's 2015/16 annual discretionary bonus scheme will vest in accordance with the terms of the Deferred Bonus Agreement dated 1st August 2016. No bonus payment will be made in respect of the Company's current financial year.
3. Performance Share Plan
Unvested awards under the Performance Share Plan will lapse in accordance with the rules of the plan.
4. Legal Fees
The Company will also make a contribution of £4,000 plus VAT towards Mr Hammad's legal fees in obtaining advice on the termination of his employment.