Stelios wins easyJet growth and dividend battle
28.03.10
Directors at easyJet have quietly decided to pay dividends to shareholders, ending a protracted dispute with Sir Stelios Haji-Ioannou, founder of the low-cost airline, the Times reports. The newspaper quotes 'senior sources on the board', who say that the board has conceded that easyJet could grow more slowly and use money earmarked for new aircraft to make regular payments to shareholders.
The issue was at the heart of the bitter row last year between Stelios, his fellow directors and the budget airline's management. Sir Stelios said the airline should slow its growth during the current recession and use excess funds to pay dividends to shareholders, against the wishes of management. Sir Colin Chandler, the chairman, resigned at the height of the row and Andy Harrison, chief executive, signed a twelve month golden handcuffs deal but is leaving to join hotel operator Whitbread as soon as it expires. The airline also lost its finance director.
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