Varadkar challenged on airline pay practices

Transport Minister Leo Varadkar has signalled dissatisfaction with Aer Lingus management over its remuneration practices, amid its ongoing pensions dispute.

He was responding to a question from Independent TD Terence Flanagan in the Dáil.

Chief executive Christoph Mueller’s total pay packet for 2013 jumped from €1.29m to €1.52m. This was helped by nearly €1m in bonus payments and pension contributions.

While his basic pay remained unchanged at €475,000, Mr Mueller’s pension contributions totalled €175,000, with ‘other benefits’ amounting to €51,000. Although his performance-related bonus fell from €647,000 to €420,000, his overall bonus essentially grew as he was awarded a special bonus of €400,000.

Mr Varadkar noted Aer Lingus’s status as a public company and that the pay packet of its chief executive is decided by the company’s remuneration committee and board.

“It is not subject to Government decision. It would be inappropriate for my department to seek to take action in this regard,” Mr Varadkar said.

An expert panel was established to review the €780m pensions deficit affecting Aer Lingus and DAA workers. It reported back to the Department of Transport at the end of last month, with Mr Varadkar now believed to be expecting a further update within the next week.