Non-executive directors
Policy
In relation to the Chairman, the Company’s policy is that the Chairman should be remunerated in line with the market rate reflecting his time commitment to the Group. In relation to non-executive directors, the Company’s policy is that their remuneration should be sufficient to attract and retain world-class non-executive directors. The Chairman and the non-executive directors do not receive performance-related pay.
Chairman’s and non-executive directors’ fees
The Chairman’s fee is determined by the Remuneration Committee. Following a review by the Committee, it was set at £350,000 in July 2007, taking into account the level of fees payable in similar companies and recognising his above average time commitment. Fees for the non-executive directors are determined by the executive directors on the recommendation of the Chairman. For the year in question, the fees (which were last reviewed in October 2006) were £40,000 per annum, with the chairmen of the Audit, Remuneration and Safety Review Committees and the senior independent non-executive director each receiving £10,000 per annum in addition to these fees. No other fees are paid for attendance at Board committees. The Chairman and the non-executive directors’ fees are not pensionable. They are, however, eligible for non-contractual travel concessions.
Service agreements
The dates of the Chairman’s and current non-executive directors’ appointments are as follows:
| Non-executive | Date of appointment | Date of election/last re-election | Expiry date |
|---|---|---|---|
| Martin Broughton | May 12, 2000 | July 18, 2006 | 2009 |
| Maarten van den Bergh | July 1, 2002 | July 19, 2005 | 2008 |
| Baroness Kingsmill | November 1, 2004 | July 19, 2005 | 2008 |
| Jim Lawrence | November 1, 2006 | July 18, 2007 | 2010 |
| Chumpol NaLamlieng | November 1, 2005 | July 18, 2006 | 2009 |
| Dr Martin Read | May 12, 2000 | July 18, 2006 | 2009 |
| Alison Reed | December 1, 2003 | July 18, 2007 | 2010 |
| Ken Smart | July 19, 2005 | July 19, 2005 | 2008 |
| Baroness Symons | July 19, 2005 | July 19, 2005 | 2008 |
Except where appointed at a general meeting, directors stand for election by shareholders at the first annual general meeting following appointment, and stand for re-election every three years thereafter, under Article 94. Either party can terminate on one month’s written notice. Neither the Chairman nor any of the non-executive directors has any right to compensation on the early termination of their appointment. Copies of the letters of engagement for the Chairman and the non-executive directors are available for inspection on the Company’s website.
Performance graph
The graph shows the total shareholder return (with dividends reinvested where applicable) for each of the last five financial years of a holding of the Company’s shares against a hypothetical holding of shares in the FTSE 100.
The FTSE 100 was selected because it is a broad equity index of which the Company is a constituent.
Total shareholder return
This graph shows the value, by March 31, 2008, of £100 invested in British Airways Plc on March 31, 2003 compared with the same value invested in the FTSE 100 Index. The other points plotted are the values at intervening financial year ends.