ST JOHN’S, Antigua, April 24, 2009 – Former Chief Executive Officer (CEO) of regional carrier LIAT, Mark Darby, has turned to an attorney to handle the matter of his dismissal which he said came about because he made merit payments to some of the airline’s employees.
The former top executive parted ways with the company on Tuesday after, according to a statement by LIAT’s Board, his contractual relationship with the airline had ended. But attorney-at-law Dane Hamilton QC issued a release yesterday saying that was not the case.
We understand that Darby’s three-year contract ends in June. In a letter given to him on the day the airline severed ties with him, he was informed that making the payments to LIAT workers without Board approval was among the reasons for his dismissal and that he would receive his full salary up until the date in June when his contract was due to expire.
“The Board terminated my client, Mr Mark Darby’s employment as CEO of LIAT (1974) Ltd for having made merit award payments to select employees. The Board has categorised such payments ‘a grave misconduct and willful neglect as the payments have been made unilaterally and unauthorized by the Board’,” Hamilton said, adding that the CEO had never been given any guidelines or directions by the Board other than as stated in his contract of employment “to exercise such powers in relation to the company and its business as compared with the norms and practices of the airline industry”.
“My client was never afforded any opportunity by the Board in advance of its decision to give credible and relevant explanations as to the basis or the distribution of these merit awards.”
But in his release, the attorney sought to offer an explanation.
Hamilton suggested there was nothing underhanded about Darby’s actions.
“These merit awards were selectively awarded for outstanding performance of their duties by employees at LIAT. They were made entirely to uplift the standard of performance of the company and recognised employees across a broad sector of the company and included awards to both senior and junior staff,” he said.
“Mark Darby as CEO never personally benefited from these payments.”
The attorney has suggested there was actually another reason that propelled the airline’s Board to dismiss Darby.
“We are of the view that this action of the Board was dictated by an ongoing issue which my client had with the Board relating to the payment of a performance bonus as stipulated by the provisions of his contract. The Board has responded to this issue in a true Caribbean bureaucratic manner,” Hamilton contended.
He declined to give details of that performance pay issue, but said it is tied to the airline’s performance.
The attorney-at-law pointed out that the results of Darby’s work at LIAT were evident, with the company now able to boast of profits after previously complaining of massive losses.
“On assuming the duties as CEO, Mark Darby was specifically charged with transforming a bankrupt and inefficient regional airline that was losing EC$80 million (US30.4 million) a year and restoring it to profitability and efficient operational practice. In spite of considerable challenges and obstacles, this he has achieved,” Hamilton said, pointing out that it was not too long ago that LIAT declared in regional newspapers that it made a profit.
The Queen’s Counsel has declined to say whether legal action would be taken against LIAT, saying that he and his client would review and carefully consider the matter.
“We intend to enforce that provision of the contract that deals with performance bonuses and any other related matter that may come into play,” Hamilton added.
Asked to comment on Hamilton’s position, LIAT’s Board of Directors issued a very brief statement that gave no direct response to Darby’s contentions or the discrepancy between the two sides’ reasons for the former CEO parting ways with the airline.
“The Board of LIAT (1974) Limited will respond to any legal challenges if and when they arise, as advised. The Board will continue to protect the interests of its shareholders and its employees,” the statement read in its entirety.
(caribbean360)