Bord Gáis chief executive, Gerry Walsh, will retire today amid a row with the Government over his severance.
Mr Walsh has reached the end of his seven-year term as chief executive of the State company and is leaving the post.
But the company said yesterday that its board and the Department of Communications, Energy and Natural Resources, are in a dispute over "the terms applicable to the departure of Gerry Walsh, chief executive, on the expiry of his contract".
Sources speculated that the row centres on either his severance package or his pension. However, neither side would comment on the precise nature of the dispute. Mr Walsh could not be contacted yesterday for a comment.
Representatives of the company's board and the department are set to meet to discuss the issue. The Bord Gáis statement said that it was making every effort to resolve the dispute "as a matter of urgency".
However, sources on both sides said it was feared that the issue could lead to a court action.
Mr Walsh cancelled a number of functions to mark his retirement. The company said yesterday that he would retire today as planned.
It is carrying on with the process of appointing a successor and has already interviewed candidates for the job.
Mr Walsh is 55 and lives in Cork, where Bord Gáis is based. It is not known what he intends to do following his retirement from the company.
Bord Gáis supplies natural gas to almost 600,000 homes and a large number of industries around the country.
It also supplies some electricity and is planning to build its own power station, an investment of approximately €400 million.
Meanwhile, in a separate development, a case being taken by another State company boss, John Hourican of Bord na Móna, has been adjourned until September.
It emerged last week that Mr Hourican is taking an action against the company, from which he is due to retire later this year, over the terms of his employment.
Mr Hourican was employed on the basis of renewable one-year contracts. Laws passed in 2003 introduced new rights for contract workers.
Mr Hourican claims that as a result of this legislation, he is entitled to be treated as a permanent employee.
