EasyJet founder seeks to oust directors over strategy row

The chairman and CE of EasyJet, together with two other directors, face being axed on Friday as EasyJet’s founder, Sir Stelios Haji-Ioannou, seeks to oust them in a row over strategy. Haji-Ioannou is counting on major investors to abstain on a vote to remove the four directors in a special shareholder vote as he seeks to cancel a GBP4.5b order for more than 100 new aircraft which he believes puts the future of the airline in doubt. Haji-Ioannou wants to oust CE, Johan Lundgren, chairman, John Barton, finance chief, Andrew Findlay, and non-executive director Andreas Bierwirth because they have refused to cancel the aircraft order, placed with Airbus. Haji-Ioannou has offered GBP5m for a whistleblower to come forward with information that would scupper the Airbus deal and has called the four executives “scoundrels”. The airline has rejected “any insinuation that easyJet was involved in any impropriety”. Haji-Ioannou and his family control about 34% of easyJet’s shares. The resolutions to remove the directors requires support of more than 50%, meaning the easyJet board could lose if a third of shareholders abstain or vote against the resolution. However, no institutional investors with large stakes in the airline have publicly supported the resolutions, and influential shareholder advisory services ISS, Glass Lewis and Pirc have recommended voting against.<br/>