Updated 11.20
The government says it cannot allow the CEO of Aer Lingus to get a bigger pension while some workers face the loss of their pension funds.
Proposals to increase Christoph Mueller's pension are expected to face heavy criticism at the airline's AGM today.
The pension bump was to include a 15% increase in the level of employer contribution to Mr. Mueller's pension, rising from 25 to 40% of his base salary.
However, the government has confirmed it will use its 25% stake to vote against the plans.
This morning the Tánaiste Eamon Gilmore said it would be inappropriate to increase Mr Mueller's pension while the pensions of other workers are in turmoil:
The Department of Transport says it has engaged intensively with the airline on the issue, expressing 'strong concerns'.
It has issued a statement today,
"Aer Lingus is facing a serious problem with the IASS pension scheme. Whatever resolution is ultimately found to resolve the IASS scheme will involve significant reductions in the pensions which members receive or expect to receive. It is totally inappropriate that at such a time the pension contribution for the CEO should increase from 25% to 40%."
For clarification, the Department of Transport told reporters, "The remuneration package of the Chief Executive is decided by the remuneration committee and the Board of the company. As a shareholder the State is entitled to express its views, along with all other shareholders... the State believes it is important that the Board and indeed the public be aware of the State’s concern at the action which has been taken."
It continues, "The issue here is not the total level of the CEO’s remuneration package which, it is understood, is at the lower end for comparable airline CEOs. This issue is about the increase in the CEOs pension contribution."
Newstalk's Business Editor Ian Guider says other investors are likely to voice concerns today:
The government is expected to vote against approving the pay package of the Aer Lingus boss at the airline's AGM today.
Independent Dublin North-East TD Tommy Broughan says Mr Mueller's salary package is inappropriate:
