Mannion's massive pay-off
Former Aer Lingus boss was handed €583,000 for leaving
Published 01/05/2010 | 05:00
THE former chief executive of Aer Lingus received a compensation payment of €583,000 from the airline when he left last year, it has been revealed.
The compensation -- detailed in the firm's annual report -- brought Dermot Mannion's overall payment to €764,000, up from €652,000 the previous year.
Another director who left last year, Sean Coyle, also received a compensation payment of €434,000 from the carrier, bringing his total pay to €875,000 for the year.
The payments to Mr Mannion and Mr Coyle were "in lieu of notice", said the airline in its report yesterday.
Total pay at the Aer Lingus board came to €2.3m spread among 16 directors, this was up from €1.3m in the previous year, with the compensation payments bringing up the overall tally.
Mr Coyle, who now works with United Drug plc, also received one year's employer pension contribution amounting to €58,400.
Mr Mannion is now working for a subsidiary of Emirates, the middle-eastern airline he worked with before joining Aer Lingus. He left after the company suffered a difficult time from Ryanair, which bought a 29pc share in the carrier.
He also found himself hit by controversy after it emerged he was to benefit from "golden parachute" payments if the airline was bought out by a bigger rival. This caused dismay on the board of Aer Lingus, with some members claiming they had never approved the arrangements.
Mr Coyle's departure from the company was never fully explained, although it is believed that the former Ryanair executive could not agree on the strategic direction of the airline with chief executive Christoph Mueller.
Another senior manager, Niall Walsh, also left the airline during the first few months of Mr Mueller's period of office.
Since then, Mr Mueller has appointed several new executives to replace those who have departed. Most of the non-executive directors were paid €36,000, with chairman Colm Barrington paid €142,000.
Because he only joined the airline in September of last year, the full pay and benefits of Mr Mueller were not revealed, although he was paid €158,000 for the period he worked, with €13,000 in car allowance/life assurance. The report also discloses that, in September, Mr Mueller received options of more than 1.5 million shares. The price they can be exercised varies and can take place at different points between 2012, 2013 and 2014.