easyJet poised to enter FTSE 100
“When she arrived, the operational performance of the business wasn’t what it should have been and the relationship with Stelios needed to be a bit more formalised, and both of those matters have been resolved,” Edward Stanford, Oriel Securities analyst, said of Ms McCall’s tenure.
Promotion to the FTSE 100 will mean funds that track the premier index would be obliged to buy easyJet shares. Citigroup estimates that on the day the company enters the index, a net 2.5m shares would need to be bought.
Sir Mike, who also holds the chairmanship of BT, has already said he will stand down in the middle of this year.
His departure would avert any potential corporate governance problems, as guidelines recommend that individuals should not chair more than one FTSE 100 company at the same time.
FTSE Group will on Wednesday disclose which businesses enter the FTSE 100, and which are demoted to the mid-cap FTSE 250. The decision will be based on the market values of London-listed companies at the close of trading the previous night.
John Wood Group, which only moved back into the FTSE 100 in September, is a likely candidate for demotion from the index, while outsourcing group Serco may also fall out of the top-flight.
After easyJet, the London Stock Exchange Group is the next in line for promotion to the main index.
A spokesman for the airline said potential promotion to the FTSE 100 was an “outcome of the successful delivery of our strategy, but not a target for easyJet”.