Scanlon resigns as ESOT chairman

Mr Con Scanlon, the deputy chairman of Eircom, is stepping down as chairman and trustee of the Eircom Employee Share Ownership Trust (ESOT).

Mr Scanlon, who recently stepped down as chairman of the Communications Workers Union (CWU), will take on the position of general manager of the ESOT from July 12th.

The decision follows a major review of the corporate governance of the ESOT, which owns just under 30 per cent of Eircom on behalf of current and former employees.

The review was carried out by accountants Farrell Grant Sparks and UK-based lawyers Ashurst following the re-flotation of Eircom this year.

It is understood that among the issues covered in the review was Mr Scanlon's dual role as chairman of the trust and Eircom's deputy chairman.

The ESOT said last night Mr Scanlon had decided to give his salary as deputy chairman of Eircom to the ESOT. But it would not disclose the value of the salary that he will be paid as general manager of the ESOT.

Mr Scanlon was not available for comment.

Mr Scanlon is one of four trustees of the ESOT nominated by the Eircom Union Coalition. The other three - Mr James O'Connor, Mr Jerome Barrett and Mr Eugene Quinn - are employees of the company.

There are two company nominees, Mr Cathal Magee and Mr Peter Lynch, who are also directors of Eircom.

The seventh nominee is Mr David Beattie, a partner with O'Donnell Sweeney solicitors.

Mr Scanlon is one of two directors of Eircom nominated by the ESOT to the board of Eircom. The other is Mr John Conroy, the chief executive of Merrion Capital.

In April Mr Scanlon announced he was to step down as secretary general of the Communications Workers Union.

He received remuneration in the region of €1.9 million in respect of his role as deputy chairman of Eircom.

He also received shares worth almost €600,000 in the company when it returned to the market last month.

In addition, a special pension scheme was created in the run up to the flotation to facilitate Mr Scanlon resignation as an Eircom employee because of potential conflicts of interest.