The DAA board has told chief executive Kenny Jacobs of its intention to suspend him on full pay, in a move that raises the prospect of a High Court conflict between the two parties.
The move comes as the board initiates a disciplinary investigation into Mr Jacobs’ conduct, after new issues emerged when a senior barrister was investigating two formal complaints against him in the spring and summer.
As of mid-afternoon on Monday, Mr Jacobs had not yet taken up his opportunity to reply to the board’s signal that he is facing suspension.
After months of tension between the board and Mr Jacobs, close observers of the rift have long expected the chief executive to take a High Court challenge to block any move against him.
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The development came on a day when DAA staff were told the board of the State-owned airports group has created and filled a new post of deputy chief executive, raising further questions about Mr Jacobs’ future.
The deputy chief executive post went to Nick Cole, who is is currently CEO of DAA International, the company’s airport consulting arm, and a member of the DAA executive team.
“Nick will combine his new responsibilities with his current role,” DAA chief people officer Siobhán Griffin told more than 4,000 staff in a email circulated around noon on Monday.
At the time of that note to staff, DAA had no comment on whether Mr Jacobs was facing suspension and no comment on whether he continues to carry out all his functions. A person close to Mr Jacobs did not reply to questions.
However, the creation of the deputy chief executive position came amid discussions on whether the DAA board should initiate a new investigation into Mr Jacobs’ conduct.
Although two formal complaints against him were not upheld by a senior barrister’s investigation during the summer, new issues emerged to raise board concern about the chief executive.
The formal complaints against Mr Jacobs were investigated by Mark Connaughton SC.
Despite serious concern about the new issues that emerged during and after his original inquiry, the board did not immediately investigate them because it opted instead to enter mediation talks with Mr Jacobs under the chairmanship of industrial relations troubleshooter, Kieran Mulvey.
[ Severance deal of near €1m for DAA chief executive Kenny Jacobs off the tableOpens in new window ]
Those talks led to a draft exit deal in September under which Mr Jacobs was supposed to leave the DAA in January. He was to receive €960,000 in exit pay and the payment of legal fees built up during and after the Connaughton investigation.
Minister for Transport Darragh O’Brien in November refused to approve the deal, saying instead that the board and Mr Jacobs should pursue reconciliation.
That prompted a new round of talks between lawyers for the parties which ended without an agreement. The mediation deal then lapsed, setting in train new board discussions about Mr Jacobs’ future.
Mr Jacobs had indicated to the board in recent times that he still wished to reconcile with it but close observers in the company and in Government circles said reconciliation was unlikely.
The board had not responded to Mr Jacobs’ offer to reconcile as of late last week.
In an October briefing for Mr O’Brien and Department of Transport officials, a DAA board delegation set out how concerns emerged about some of Mr Jacobs’ language and behaviour before directors reached the conclusion that he was unsuitable.
The breakdown in relations between the board and Mr Jacobs came less than three years into his seven-year term.
Although Mr Connaughton did not uphold the original protected disclosures against Mr Jacob, the DAA delegation told the Minister of further board concern about the emergence of other issues separate to those raised in the formal complaints.
These included, but were not limited to, questions over certain information from Mr Jacobs to board members. There was concern over proposed changes, later scrapped, to DAA policy on the provision of wheelchairs to passengers with restricted movement.
The meeting was told Mr Jacobs was offered an opportunity to consider his behaviour. However, DAA directors concluded he had not showed appropriate understanding of the issues or a way forward to address them.
When the board decided Mr Jacobs was unsuitable to continue, mediation was seen as one of three options. The alternatives included a full investigation into the other issues that had emerged after the protected disclosures. This came back into play when the mediation deal fell.
