THE chairman of Bord an Mona, Mr Pat Dineen is due to meet his predecessor Mr Brendan Halligan this morning to discuss the controversial remuneration terms of the company's managing director, Dr Eddie O'Connor. Mr Dineen will then chair a meeting of the company's board this afternoon, at which Dr O'Connor's refusal to meet accountants investigating his package will be discussed.
Last week the board adjourned a ti to give Dr O'Connor time to clarify issues raised by a report on his remuneration over the last nine years, which was prepared by accountants Price Waterhouse.
The terms under which the report was drawn up have become a key point of contention between Dr O'Connor and the board, with the managing director saying that the accountants went beyond their brief in examining business expenses, which were of no benefit to him.
The draft Price Waterhouse report showed that Dr O'Connor's total pay, bonuses and expenses reached £1.867 million over the last nine years, including £585,000 in expenses. However, Dr O'Connor has said this is a gross overstatement and that his package was worth no more than £750,000 as the bulk of the expenses went towards the cost of running his office.
Dr O'Connor said that all elements of it were agreed with Mr Halligan. Mr Dineen is expected to establish the nature of the agreement between Dr O'Connor and Mr Halligan this morning.
Dr O'Connor is understood to have refused to meet the accountants, as he believes that their report goes beyond the mandate they were given by the board and the Department of Transport Energy and Communications. According to a letter to Mr Dineen from Mr John Loughrey, the Secretary of the Department, the accountants were to quantify the "total benefits" that Dr O'Connor received.
The letter asks that "The information should include the cost to Bord na ....... of the total benefits, analysed by significant cost classifications, which can be attributed to the chief executive." Dr O'Connor claims that the inclusion of his business expenses in the report is outside this mandate, as they were of no benefit to him.
It is understood that the board may today give Dr O'Connor an ultimatum to meet the accountants. However, the directors will first want to hear the outcome of Mr Dineen's meeting with Mr Halligan.
The directors are thought unlikely to consider a motion of no confidence in Dr O'Connor today. If they go this route a further meeting would probably be required. It would then be up to the Minister for Energy, Mr Lowry and the Government to decide what action to take.
Dr O'Connor has also said that Mr Halligan was mandated by the board to negotiate confidentially with him (Dr O'Connor). Extracts from the minutes of the board meeting at the time state. "The chairman recommended that such facilities and resources, e.g. car and expenses, which would be required by the managing director to discharge his duties should be agreed by the chairman and the managing director and should remain confidential between them. This was agreed by the board".
