Sunday 4 December 2016

Aer Lingus boss Kavanagh and CFO Bot to get bonus after €1.4bn sale

Published 21/06/2015 | 02:30

Aer Lingus CEO Stephen Kavanagh
Aer Lingus CEO Stephen Kavanagh

Aer Lingus chief executive Stephen Kavanagh and his chief finance officer Bernard Bot may receive bonuses worth €1.31m as their long-term incentive scheme will pay out when IAG takes over the airline after its €1.4bn buyout offer.

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Kavanagh, who became CEO in February, has been awarded 292,000 shares in the airline under the incentive scheme. Bot has 223,000 shares under the scheme.

Kavanagh's bonus shares related to the period January 2012 to December 2014.

The Aer Lingus board decided that these shares should vest - be given to Kavanagh - regardless of the IAG takeover offer. The board decided that the total shareholder return over that period had not been affected by the takeover approach by IAG. However, the shares did not vest when they were supposed to because of the takeover approach.

Finance chief Bernard Bot was awarded 223,000 shares under the airline's long-term incentive scheme. These shares were awarded to Bot "in the context of his recruitment and appointment", according to the offer document. Bot joined Aer Lingus less than a year ago, September 2014. His shares "are the portion of the awards... that are capable of vesting in the event of the offer becoming wholly unconditional in August 2015".

Last Friday, IAG posted its offer document to Aer Lingus shareholders as the €1.4bn takeover moves closer to completion.

Ryanair's 29.9pc stake remains a potential roadblock for the deal, as Michael O'Leary has yet to indicate whether he will sell the shares to IAG. Last week, he met with Willie Walsh in Brussels as part of an aviation lobby group.

Sunday Indo Business

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