Representatives of easyJet founder Sir Stelios Haji-Ioannou will be attending the budget airline’s AGM tomorrow (23 Feb) at Luton Airport. They intend to ask the following questions, already submitted to easyJet chairman Sir Michael Rake:

“easyGroup, the largest single investor in the Company, is obviously interested in maximising the total shareholder returns and protecting our investment from undue risks . We are glad that we started the debate on remuneration and the interest it has generated. We are also looking forward to the remuneration committee publishing  their proposals on the final formula for the calculation of executive bonuses sooner rather than later. But we have two additional questions on issues regarding accountability and transparency of management  actions.

1) The first question relates to the validity of any votes cast on resolutions put before this meeting.

Standard Life Investments, holding about 26 million shares (approx 6%) of easyJet’s share capital has declared itself publicly in the Sunday Times article of the 12^th of February, 2012 as a staunch supporter of easyJet management’s remuneration policy and its growth strategy of exclusively buying Airbus aircraft. It is also the manager of the multi-billion pound pension fund for EADS, Airbus’ parent company and sole supplier to easyJet. We now believe the size of this fund to be between £5bn and £13bn generating annual management fees in excess of £200 million per year. (This needs to be seen in the context of the value of the Standard Life stake in easyJet valued at about £100 million in total (at about £4 per share)).

We stand to be corrected if these numbers in the public domain have not been interpreted correctly. However, can the Board confirm it has:

a: Sent a section 793 request to Standard Life? Yes or no? Has there been a response? Is there a voting agreement between Standard Life and Airbus or its parent company or it’s pension fund? The board has previously said this is a vote of confidence in its growth strategy, involving the purchase of more Airbus aircraft. We strongly believe that as a result these shares should not be voted on grounds of conflict of interest. Does the board agree?  

b: Can you also confirm if you have sent a section 793 request to Sanderson Asset Management? Yes or no? Does this company have any links whatsoever to EADS/Airbus?”

2) The second question is directed to the chairman of the audit committee, David Bennet. The Guardian reported (20/10/11) that Simon Gulliford acting via his “one man band” Gulliford Consultancy retained by EZJ to advise on the selection of a new advertising agency to spend its £50m on a TV ad campaign. The contract was eventually awarded to VCCP, one of Tim Bell’s companies. A few months later, another Tim Bell-owned company purchased the Mr Gulliford’s consultancy for £4.75million.

Can you confirm : When was Gulliford hired by easyJet and for how long? Was it full time or part time?  How much was he paid? Who signed his contract? What percentage of Gulliford’s  revenues  in that year did the easyJet contract represent? Was Gulliford in favour of awarding the £50m TV campaign to Tim Bell’s company or not? Have you as chairman of the audit committee checked to see if the price paid by Tim Bell to Gulliford was justified by the profits of the company on an on going basis? Yes or no?

Did you make inquiries if  Gulliford has any past or  on going links with Peter Duffy or other easyJet executives, current or past? Yes or no?”