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Publication of the Dublin Airport Authority's (DAA) annual report for 2010, on 24th June, revealed that that CEO Declan Collier was awarded bonuses of more than €106,000, although most of it was deferred due to Government policy. This triggered a controversy with Minister for Transport, Tourism and Sport Leo Varadkar coming out immediately saying he was “very dissatisfied” that the DAA had made provision for the performance-related payment for Mr. Collier. In spite of the Government’s clear policy that no performance-related payments was be made in respect of 2010, Mr Collier's total remuneration package amounted of €612,500 in 2010, (up from €568,100 in 2009) included performance-related bonuses although these were not to be paid until the end of his contract. Somewhat cynically, Mr Collier took a 12% cut in his basic salary which dropped to €308,489.

The controversy followed the announcement on 22nd June by Minister for Public Expenditure and Reform, Brendan Howlin of pay ceilings for CEOs of Semi States and Senior Public Sector Posts. This decision was made “in light of the ongoing severe economic conditions facing the country there is a need for leadership to be shown by those who hold high office across the public sector”. On foot of proposals brought to Government by the Minister, The Government agreed to the introduction of a general pay ceiling of €200,000 for future appointments to higher positions across the public service and a general pay ceiling of €250,000 for future appointments to CEO posts within Commercial State Companies. Given the potential legal and contractual issues arising from the imposition of an immediate reduction of salaries on current incumbents the Government decided to seek, in the first instance, voluntary waivers of salary of 15%, or by a lesser amount if the application of the full 15% reduction would bring the salary levels of such individuals to below the proposed new pay ceilings.

There was widespread adverse comment over Mr. Collier’s salary over the weekend following the publication of the DAA accounts. However, the affair underlined just how legally powerless any government was in on moderating pay levels at commercial state companies. However, Minister Varadkar played his only card threatening not to reappoint the present DAA board members if the payments went ahead.

In the face of continued criticism a standoff could not have been allowed to continue and it was Mr. Collier who made the first move. On 26th June a statement was issued by the DAA which said “the Chief Executive of DAA, Declan Collier, has informed the Minister for Transport, Tourism and Sport, Leo Varadkar, T.D., that in light of prevailing national economic circumstances, he will forego performance related pay in respect of 2010, approved by the company”. By way of explanation it went on “The Board of DAA had approved a performance related payment in respect of 2010 to Mr Collier based on the achievement, as per his contract, of rigorous performance related targets that year. In light of prevailing national economic circumstances, the Board and Mr Collier had agreed to defer payment until the termination of his contract. Based on legal advice, the Board was obliged to account for this potential liability and accordingly had made provision for this in DAA’s 2010 Financial Statements, published on 24th June”. Minister Varadkar immediately welcomed the decision saying “I welcome the decision by Declan Collier to forego his bonus for 2010 and his acceptance that the terms and conditions of the CEO’s position will be substantially reduced next year, in line with Minister’s Howlin’s reforms. I am pleased that Mr Collier and the DAA board are now complying with the policy of my Department, and of the Government as a whole”.

However, the affair had put Mr. Collier under the spotlight and questions were also asked his role as a ‘public interest director’ with Allied Irish Banks (AIB). Mr Collier was appointed to the board of AIB in January 2009 and to the bank's remuneration committee the following April and audit committee in October 2010. The remuneration committee recommends pay scales to the bank's board, the chairman and group chief executive's wages and performance-related incentive schemes and this prompted Independent TD Shane Ross to call for Taoiseach, Enda Kenny to look at Mr Collier's position and called on him to stop the culture where "insiders are rewarding insiders". The Taoiseach would not be drawn on Mr Collier's position but added: "Personally I find it certainly not good practice, put it that way".

It was also revealed that Mr. Collier strongly opposed the idea of privatising Dublin Airport during discussions he had last year with economist Colm McCarthy, who was reviewing the semi-state sector. He said early indications were that selling Dublin Airport would only result in "extremely modest'' proceeds and claimed the government would lose control of vital strategic assets and that allowing private sector players in could hurt the level of customer service at the airport.

Separately, at the 21st ACI Europe Annual Congress on 21st June in Lisbon hosted by ANA (Aeroportos de Portugal), Mr. Collier, was elected to lead ACI Europe as President. Accepting the post he said “I am honoured to take on this role. Recent years have shown our industry still faces plenty of challenges and that we need a strong representation with policy makers and regulators at European level. More than ever, decisions taken in Brussels affect our business, and that trend is only set to continue. I will work closely with our office and staff in Brussels, and will seek to engage the Board and the membership at large in actively supporting our advocacy efforts. Alongside the strong presence and efficiency of our association, my priority at all times will be on ensuring that we defend the collective interests of all our members – regardless of size, location or business model. This includes members of ACI Europe’s World Business Partners programme as they are an essential component of our association”. In his ‘advocacy’ role it will be interesting to see how can implement Government policy and how in his own words he can ensure that “airports are treated and recognised as commercial businesses in their own right”. It must be remembered that serious tensions between the DAA and the Minister Varadkar preceded the decision of DAA chairman David Dilger to resign.