Sir Stelios trying to clip the wings of the Board again?

Sir Stelios trying to clip the wings of the Board again?

Well you can’t keep a good man down although its likely that easyJet Non-Executive Director Professor Rigas Doganis would probably not think Sir Stelios is a good man at the moment. No sooner has Sir Stelios given the Professor the thumbs up and his backing in February to then turn around this week and feel the Sword of Damocles in his back. Its nothing personal, just Sir Stelios showing his disapproval with a board that seems focused on the growth of sales and seemingly forgetting its all about the profit. The Board may regard Sir Stelios as a nuisance but does he have a point (no pun intended)? Read more here

For the person that wants the role of Non-Executive Director the example of Sir Stelios Haji-Ioannou shows what can happen in the Board Room when a powerful share holder has you in the sights. The EasyJet story, whilst not the everyday tale of the Non-Executive Directors role, it does show that even though a NED role can be rewarding it can also be demanding.

One Response to Sir Stelios trying to clip the wings of the Board again?

  • Devils Advocate

    Now call me a suspicious old devil but easyJet announcing this morning that they are revising the profit forecast from a top line figure of £230m to between £240-£250m AND paying a special dividend. Sounds like someone’s stuffed their collective paw down the back of the Boards couch and pulled out a Dove of Peace for Sir Stelios?

    We can all have a wry smile about the story but what is the truth? We know that Sir Stelios was furious and remains so as he watches and attacks the Board over decisions that he believes do not create enough margin. The Board then release a statement which in reality shows a possible increase in profit of 5% over forecast and the ability to pay a the dividend. Sir Stelios and his family are the largest shareholders of easyJet and as we know Sir Stelios founded the business and it appears that the tail can wag the dog. Can we believe the Board in this instance? Even though they adjusted the company business model earlier in the year and the profit can be directly attributed to this action, would it not have made more sense to hold the announcemnt a little longer and get some breathing space between this and Sir Stelios breaking rank earlier this month? Is there really enough in the forecast to show the Board are correct or come the end of the (financial) year will this come back to bite them?Read more

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