Coillte chief bows to pressure on pay cut

COILLTE chief executive David Gunning has bowed to Government pressure and volunteered to have his €297,000 salary cut by 15%.

The moves brings his annual pay to slightly above the €250,000 cap set by the Government for all future chiefs executive of semi- state companies.

Last week the state forestry firm refused to come forward and deliver the pay cut. This was despite Taoiseach Enda Kenny and senior ministers voicing their annoyance at the package enjoyed by its chief executive.

The salary spat came 11 months after Coillte defied ministerial and departmental demands and went ahead and paid Mr Gunning a €56,000 bonus for his work in 2008 — a spat documented in the Irish Examiner on November 21.

This year the company also offered him a bonus for 2010, which he refused to accept.

However, despite Coillte’s improved performance this year, Mr Gunning has decided to allow his pay be cut by €44,550 to fall into line with the Government’s policy for the commercial semi-state sector.

A statement from the company said it had not been refusing to reduce Mr Gunning’s salary and the delay in making the decision was simply to allow time for the matter to be considered.

“At no stage did the chief executive decline to accept the proposed voluntary waiver. Coillte has consistently indicated that no decision had previously been made on the matter, which has been under consideration for some time,” it said.

Mr Gunning had been working on a seven-year contract which entitled him to a €297,000 salary, a €100,000 pension payment, a €2,000 a month car allowance and a €7,500 company-sponsored health insurance package.

He can also earn up to 25% a year in performance related bonuses and a further 10% a year award which is based on longer-term targets.

Agriculture Minister Simon Coveney welcomed Mr Gunning’s decision to allow his basic pay to be lowered.

He said it was “consistent with Government policy” and he looked forward to working with Mr Gunning to develop the forestry industry.

Mr Coveney’s predecessor in the department, Fianna Fáil TD Brendan Smith, had a protracted an ultimately unsuccessful fight with Coillte over its insistence on awarding him a €56,000 bonus for 2008 in conflict with government demands.

Documents released to the Irish Examiner showed that at a remuneration meeting held in January, to debate the releasing of Mr Gunning’s 2008 award, directors of Coillte argued it would be unethical, unprofessional and illegal to withhold the bonus.