Aer Lingus chief’s pay ‘jars’ with Varadkar

Transport Minister Leo Varadkar has sought “full details” of the financial package of Aer Lingus CEO Christoph Mueller, saying it “jars” with him that anyone’s pension contributions should rise when a massive pension deficit remains at the airline.

Last month, the airline’s annual report showed Mr Mueller was paid €1.52m last year, up from just over €1.29m for 2012. His pay remained unchanged at €475,000, but his pension contributions amounted to €175,000, with “other benefits” totalling €51,000.

The payments prompted Timmy Dooley, Fianna Fáil’s transport spokesperson, to call on the Government to reject the remuneration package for Aer Lingus senior management, including Mr Mueller, while the pension crisis at the company remains unresolved.

He said the Government should vote against the pay- out at the airline’s AGM next month.

“The Government has a 25% stake in Aer Lingus and has the power to vote against these large salaries and pension payments,” said Mr Dooley.

“It’s incredible to think that ministers could approve exorbitant bonuses for management at a time when they expect ordinary workers to take a hit on their pensions.”

The Irish Airlines Superannuation Scheme, which has members from Aer Lingus and the Dublin Airport Authority, is currently more than €750m in deficit.

How to resolve that hole has been the subject of embittered negotiations between unions and management for over three years.

An expert panel made up of union, business, and financial experts is currently looking for a breakthrough in the negotiations.

The process was given greater impetus yesterday with the trustees of the scheme warning in a letter that the Pensions Authority has the power to wind up the scheme if a viable funding proposal is not forthcoming. The trustees have set January 1, 2015, as the date they want new terms to be enacted.

Last week, Mr Varadkar referred to 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 in a response to a parliamentary question at that point.

However, yesterday the minister indicated that he was still looking at the package given to Mr Mueller.

“I have sought full details of the CEO’s package from Aer Lingus and will then consider the matter further.

“It does jar with me that anyone in Aer Lingus should have their pension contributions increased while a solution has not yet been found to the pension deficit.”