AER LINGUS’S recently-departed chief executive Dermot Mannion took a 41 per cent cut in his total pay last year, according to the airline’s annual report. Mr Mannion, who quit Aer Lingus in early April, earned €652,000 last year compared with €1.115 million in 2007.
His 2008 pay comprised €485,000 in salary and fees (this was an increase of €52,000 on the previous 12 months), a pension contribution of €128,000 (down from €312,000) and other benefits of €39,000.
Mr Mannion was not paid a bonus in 2008. He had earned performance-related pay of €335,000 the previous year.
The sharp adjustment in Mr Mannion’s pay reflected the dramatic turnaround in Aer Lingus’s financial performance last year. The airline went from a profit of €105.3 million in 2007 to a loss of €107.8 million last year.
Aer Lingus is expected to be more than €100 million in the red again this year due to the recession.
The annual report also states that former finance director Greg O’Sullivan, who left the airline last June, received a “retirement” payment of €443,000 and a “special pension contribution” of €415,000.
Mr O’Sullivan also earned €138,000 for his work as an executive during the year.
In total, Aer Lingus paid its board €1.7 million compared with €2.2 million in 2007. This reflected the non-payment of bonuses. It does not include the retirement benefits earned by Mr O’Sullivan.
Chief financial officer Seán Coyle, who joined Aer Lingus last August from Ryanair, was paid €187,000.
Former chairman John Shaman, who left in October, was paid €175,000, while his successor, Colm Barrington, who joined the board on September 9th 2008, earned €58,000.
Mr Barrington has taken executive control at the airline until Mr Mannion’s successor is in place.
Disgraced former Anglo Irish Bank chairman Seán FitzPatrick, who quit the board on December 19th last, was paid €45,000 as a non-executive director.
In total, non-executive directors were paid €730,000 last year, an increase of 27 per cent on 2007. In February, Aer Lingus’s directors agreed to take a 20 per cent cut in their annual fees.
Aer Lingus’s board meets this morning to consider its response to the sharp drop in passenger traffic.
The airline has signalled that it could reduce its long-haul services and seek further cost-cutting measures from staff.
