Standard Life Investments to back Easyjet pay overhaul

Standard Life Investments (SLI) has said it will back Easyjet's plans to overhaul its executive pay and boost financial performance at the low-cost airline business.

The Edinburgh-based investment house, which across its funds owns around 7% of easyjet's stock, said it will vote in favour of proposals being put forward to shareholders today, with its investment director, governance and stewardship Jonathan Cobb publicly backing the strategy in a statement.

'We are supportive of the group’s strategy that was unveiled by the CEO Carolyn McCall in November 2010 and welcome the improvement in easjet’s financial performance during 2011, reflecting in part the benefits of the new strategy,' Cobb said.

He added: 'Turning to the matter of executive remuneration, we support the use of Roce (return on capital employed) as a measure of financial performance as it provides a high degree of alignment between the financial management of the strategy of easyjet and the interests of the providers of its perpetuity capital, namely the shareholders.

'We welcome the steps the board has taken to improve Easyjet’s financial performance and to support its strategy. Today, we are voting in favour of all the resolutions before shareholders in the expectation that this dialogue continues and would encourage other investors to do the same.'

Other shareholders in easyJet include BlackRock, Schroders and Legal & General.