‘Bloated fees unjustified'
Ryanair has called for fees paid to the non-executive chairman and directors of Aer Lingus to be cut substantially.
It described the €200,000 payment made to Aer Lingus chairman Colm Barrington as "unwarranted and unjustified" and those of €45,000 to other non executive directors as "bloated."
Europe's largest low cost carrier (LCC) has also called for an end for multi-million Euro bonuses being paid for departing executives.
Ryanair, the largest minority shareholder in the Irish carrier with a 9.8%stake, has tabled three motions at the Aer Lingus AGM next month.
It has also called for support form other shareholders including the Irish transport minister and the Aer Lingus Employee Shore Option Trust (ESOT).
The resolutions call for Mr Barrington's fee to be cut from "to the €35,000 fee paid by Aer Lingus to its previous Non Executive Chairman in 2006", for fees paid to no executive directors reduced to €17,500 and for an end to bonuses for retiring directors.
The LCC said these fees were being paid at a time when Aer Lingus had reported post-tax losses of €108m for 2008, was predicting losses of in 2009 and whose share price had fallen from €1.60 in January to €0.60 in May.
It said directors receiving these payments could not "credibly" lead a cost cutting programme at Aer Lingus.
Michael O'Leary, Ryanair's ceo, said: "We believe that the three resolutions we have proposed are in the best interests of Aer Lingus, its stakeholders and shareholders.
"If there are to be more cost cuts and efficiency at Aer Lingus, then the non executive chairman and directors should lead from the front.
"The current level of directors' fees is bloated, excessive and unjustified in a small company which has a market capitalisation of just over €300m and where those directors already receive the substantial benefit of free first class travel on Aer Lingus and other airlines worldwide."
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