DAA chief executive Kenny Jacobs has engaged law firm Arthur Cox to represent him in negotiations with the company amid a serious rift with other members of the board at the State-owned airport operator. The fallout may lead to his exit after less than three years in the role, according to four sources.
DAA’s board, led by chairman Basil Geoghegan, has retained law firm McCann FitzGerald to represent it on the matter, it is understood.
Industrial relations veteran Kieran Mulvey is acting as mediator between both sides.
Sources suggested a mutual agreement that could see the CEO leave the DAA could be close.
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It is expected that any deal would have to be approved by Minister for Transport Darragh O’Brien and Minister for Public Expenditure Jack Chambers.
While CEOs of Irish semi-state companies typically have five-year contracts, Mr Jacobs’ deal was set at seven years at the operator of the Dublin and Cork airports.
The basic salary attached to the remainder of his contract is north of €1.2 million. Mr Jacobs received €285,000 in basic pay last year, but pension contributions and other taxable benefits brought his total remuneration to almost €375,000.
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While Mr Jacobs was the subject of a protected disclosure complaint by a DAA staff member in relation to dignity-at-work matters, it is understood that the allegations were not upheld after being examined by senior counsel.
Still, tensions between Mr Jacobs and the board have persisted, leading to the lawyers getting involved and the matter being brought to the attention of senior Government figures. Mr Jacobs is being advised by Arthur Cox employment law partner Cian Beecher.
“DAA is constrained by law from commenting on protected disclosures,” a spokeswoman for the company said. “All concerns raised under DAA’s protected disclosure policy are reviewed and we confirm that no complaints have been upheld. We cannot comment on board matters, which are confidential.”
The spokeswoman declined to comment on the law firms representing both sides. Mr Jacobs and a spokesman for Arthur Cox declined to comment.
A spokeswoman for the Minister said: “Operations within State companies are matters for the boards of those companies. Accordingly, it would not be appropriate for the Minister or Department [of Transport] to comment on such matters.”
The boardroom friction comes as DAA is struggling to secure permission from Fingal County Council to increase the annual passenger limit at Dublin Airport to 40 million from 32 million. It is also struggling to advance a major development plan at its campus.
DAA submitted a €2.4 billion investment plan to the council in late 2023. However, the local authority said the process has stalled as noise regulators await documentation from DAA.
The body was hit with an enforcement notice by Fingal County Council in June after Dublin Airport last year breached the 32 million passenger cap. It gave DAA a two-year period to comply with the passenger capacity conditions, even as the restriction has effectively been paused by the High Court since April pending a separate ruling from the European Court of Justice.
The board ultimately decided that it had no option but to apply for a judicial review of the enforcement notice, as failure to comply with the council’s order would have amounted to a criminal offence with no right of appeal.
Confirming the judicial review, Mr Geoghegan said in a statement: “The board of DAA agreed to the application for judicial review. We continue to work constructively with Fingal County Council to achieve a successful infrastructure application, which will safeguard Dublin Airport, its customers and communities while contributing to Ireland’s economic success.”
