BUSINESSMAN PHILIP Lynch was yesterday dramatically removed from his position as chief executive of Dublin-based investment group One51, which he founded.
The board of One51 terminated Mr Lynch’s contract with immediate effect following weeks of internal wrangling and pressure to resign.
Mr Lynch had been under pressure at One51 over the poor financial performance of the company, his €1.4 million annual pay and a collapse in the company’s share value. He has also faced criticism over corporate governance standards.
In a statement Mr Lynch said: “In recent weeks it became apparent that the board wished to invoke the termination provisions of my contract.
“I endeavoured to reach an amicable resolution whereby a smooth transition to a new chief executive could be achieved in the interests of the company and its shareholders.
“I wanted to serve out my notice period and remain with the company until 2012 or until a successor was appointed.”
Mr Lynch (65) said One51 was in “great shape and my departure only denies me the opportunity to realise . . . the value that is intrinsically there”.
The Corkman’s contract was due to expire in 2014. It is understood he has received two years’ salary as his termination payment.
Mr Lynch has had a difficult year. He and his family are being sued by AIB in relation to a €25 million land deal in Waterford. He is also the subject of an inquiry by the Financial Regulator into share dealings at listed drinks group C&C, where he is a non-executive director. Last October he stepped down as chairman of the development board of the new national paediatric hospital at the request of then minister for health Mary Harney after a disagreement over the project.
Mr Lynch spent 37 years working at 151 Thomas Street, Dublin. From there, he helped to create the publicly traded food group IAWS before stepping down in 2003. Alan Walsh, One51’s chief financial officer, has been appointed as interim CEO.
