LAST YEAR AER Lingus paid its chief executive Christoph Mueller was paid over €1.5 million, a higher wage than he was earning in 2012, which was nearly €1.3 million.
In Aer Lingus’ annunal report published today, Mueller’s pay package is outlined in the graph above, which shows that his basic pay is €475,000, but he gets an annual performance-related bonus of €420,000 and a special bonus of €400,000.
There is also his pension contributions of €175,000 and other benefits amounting to €55,000.
The report also outlines Muellers share options in the company.
Insulting
IMPACT trade union, which represents cabin crew, pilots and some administrative staff at Aer Lingus said the pay package is “insulting and unsustainable” in light of the pension crisis.
The statement said:
Aer Lingus staff are dismayed by the revelation today that the company’s chief executive, Christoph Mueller, is to receive a pay package of €1.5 million this year, which includes significant bonuses and a pension top-up.
They said the pay package the chief executive was getting was “insulting to staff who are likely to be facing a substantial cut in their retirement incomes on top of a decision by the company to slash an agreed staff gain-sharing payment by up to 80 per cent,” said the union.
Pay bonanza
IMPACT national secretary Matt Staunton said:
Year after year staff have seen their incomes decline, and their working lives get tougher, because of measures imposed by Aer Lingus on the basis that the company is in difficulty.A personal pay bonanza of €1.5 million for Mr. Mueller just doesn’t add up against this background.It’s unsustainable and, under the circumstances, it’s an insult to the hard working staff of the airline who’ve worked incredibly hard to return the company to profitability.”
Staunton said the company announced to staff today that it is to cut payments under an agreed gain sharing scheme.
“The Greenfield rescue agreement included a payment for profitability targets worth an average of less than €1,000 per worker for their contribution to keeping the company in profit. The company has announced it will now pay only €250 under the gain sharing agreement. This is in stark contrast to those bonus payments made to Mr Mueller,” he said.
Costs
Staunton said:
Staff at Aer Lingus resent the lecture on having to take bad medicine while the chief executive continues to protect his own contractual arrangements, and trouser a lottery-sized salary and bonus package.
Under cost saving initiatives outlined in the report the airline is to seek cost reductions of €30 million, which include job losses and increased productivity.
Mueller states in the report that progress on maximising their cost base was “inhibited in 2013 by the inability to implement the Labour Court recommendations on pensions. Against that background, we have concluded that we cannot afford any further delays and we must press ahead…
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