Aer Lingus said Ryanair intends to propose pay cuts for the chairman and non-executive directors at the agm of the former State airline on June 5th.
In a statement this morning Aer Lingus said Ryanair intended to propose that the remuneration for the role non executive chairman, a post currently held by Colm Barrington, should be reduced from €175,000 received last year back to the €35,000 earned by his predecessor in 2006.
Ryanair has also suggested that remuneration of non executive directors should be reduced from €45,000 to €17,500, the level earned in 2006.
Ryanair has also said that future increases should not exceed general pay increases for Aer Lingus staff.
Ryanair holds just under 30 per cent of Aer Lingus shares and said it was proposing the changes in a bid to save costs. It has twice failed in hostile takeover bids for the airline.
Aer Lingus said on February 3rd its board members voluntarily decided to reduce their fees by 20 per cent, resulting in annual Directors' fees of €36,000 and an annual chairman's fee of €140,000 for 2009.
“The Aer Lingus Board believes that the existing non-executive directors' fees and chairman's fees are reasonable having regard to the high level of board activity and the increase in Directors' responsibilities since the IPO.”
Aer Lingus is calling on shareholders to vote against the proposals.
Aer Lingus noted that in February all board members voluntarily reduced their fees for this year by 20 per cent, brining annual fees down to €36,000 for non-executive directors and €140,000 for the chairman.
