Exclusive: POLITICIANS from the main parties approved a massive £275,000 golden handshake to Derry City Council chief executive Sharon O’Connor despite legal advice she may not have been entitled to it.
Lawyers discovered there was a break in her service for 10 days between her joining Derry City Council from Down Council, Derry Daily has learned.
However they also advised councillors they might face a legal challenge if they didn’t go ahead and give her the massive pay-out, according to our sources.
She has since landed a role as the head of the Education Authority.
The golden handshake included cash and a top-up of her pension.
“There was an ‘out’ there for the councillors if they didn’t want to approve the pay-out,” said our source.
“But the main parties – SDLP and Sinn Féin included – approved the money. There was a legal warning that they could face legal action if they didn’t approve the money, but legally and technically and whatever way you look at it, there was a break in her service between jobs so they could have said ‘no’.
“In the end Derry ratepayers ended up subsidising the Down council part of her career and the pay-out.”
A native of Lambeg, Ms O’Connor, who only took up the post in Derry in November 2011. She said her departure was due to “entirely personal reasons.”
She joined Derry council on an annual salary starting at £107,500 plus expenses.
The council had approved a £10,000 salary increase for whoever would replace former chief executive Valerie Watts – despite staff suffering a two-year pay freeze. Ms O’Connor was quickly forced to defend being granted a £500-a-day mentor, stressing it was a vital part of her “bedding-in” process.
Ms O’Connor also requested that thousands of pounds of ratepayers’ money be paid towards her rent, in lieu of removal expenses she may have incurred coming from Co Down to live in Derry.
Her pay-off later sparked a bitter tirade of abuse online.
The pay off is 17 times the average annual working wage in Derry.
Her new job running the new Education Authority – which takes over the current education and library boards from next month – comes with a £55,000-a-year salary, plus expenses.
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