Aer Lingus paid former senior executives more than €1m in compensation last year

AER LINGUS paid more than €1 million in compensation for loss of office last year to former senior executives Dermot Mannion and Seán Coyle, its 2009 annual report has revealed.

Mr Mannion, who stepped down as chief executive on April 6th, 2009, was paid €582,500 – the equivalent of one year’s salary.

Mr Mannion also received a basic salary of €132,000, a pension contribution of €34,000 and other benefits of €15,000. This gave him total pay of €764,000.

Mr Coyle, who left his position as chief financial officer last December, was paid €433,500 in compensation. This comprised a severance lump sum of €375,100 and one year’s employer pension contribution of €58,400.

Mr Coyle, who has since secured a post with United Drug, was also paid a basic salary of €346,000, a pension contribution of €58,000 and other benefits of €37,000. His total remuneration was €875,000, making him the highest earner at Aer Lingus in 2009.

Aer Lingus chief executive Christoph Mueller, who took the controls last September, was paid €171,000 for his first four months with the airline. This comprised a salary of €158,000 and other benefits of €13,000.

In total, Aer Lingus paid its executive directors €1.8 million last year, compared to €839,000 in 2008.

Aer Lingus chairman Colm Barrington was paid €142,000 in 2009, his first full year in the role.

The 13 non-executives who served on the airline’s board last year were paid €545,000 in total. This compared with €510,000 in 2008.

In his chairman’s statement, Mr Barrington said market conditions “remain difficult” in 2010.

“I know that the changes that have been made at Aer Lingus . . . are already contributing to improved operating results and cash protection, which will be enhanced as the economic environment improves,” he said.

Mr Barrington also said Ryanair’s presence on its share register – it owns 29.11 per cent of Aer Lingus – was “damaging to the interest of the shareholders of both companies”.

He said a merger of the airlines would be “detrimental to the public interest”.

In his chief executive’s review, Mr Mueller said 40 per cent of management positions would be eliminated as part of the latest restructuring programme.