CalMac faces court threat over secret CEO exit package

Scotland's official anti-secrecy regulator found that the Gourock-based ferry operator unlawfully withheld details of the pay-out given to former chief executive Robbie Drummond after claiming disclosure would breach data protection rules.

The publicly-owned company could face court action if the information remains withheld, although a spokesperson said the firm intended to fully comply with the ruling, which requires it to release the details later this month.

According to reports in the Telegraph's sister title, The Herald, CalMac Ferries agreed to pay Mr Drummond a sum to cover six months of 'gardening leave' after he stepped down in April 2024 following six years in the post.

Official documents have since revealed that government officials were told of a plan to replace him nine days before his ‘resignation’ was announced.

Less than four months after he left CalMac, Mr Drummond was unveiled as the new finance director and company secretary at the Greenock-based McGill's Bus Group.

CalMac refused to reveal the total value of the exit deal given to Mr Drummond, arguing that publishing the figure would breach privacy laws.

A legally enforceable decision by Scotland's Information Commissioner follows a year-old freedom of information request seeking the full extent of what the former chief executive received when he stepped down with immediate effect on April 3, 2024

Robbie Drummond resigned as CalMac Ferries' chief executive in April 2024 - though official documents have since revealed that government officials were told of a plan to replace him nine days before Mr Drummond was informed. (Image: Colin Mearns)

The commissioner ruled that the payment related to the chief executive’s public role and the use of public money — and that withholding the figure breached Scotland’s openness laws.

In his decision, the commissioner ruled CalMac had breached the Freedom of Information (Scotland) Act 2002, saying there was a legitimate public interest in knowing how much senior executives at public organisations are paid on exit, and that CalMac was not entitled to hide Mr Drummond's severance payments under transparency laws.

CalMac has now been ordered to hand over the information by January 26, with a warning that failure to comply could ultimately result in the case being referred to the Court of Session.

Robbie Drummond was named as the McGill's Bus Group's new finance director and company secretary in July 2024, less than four months after leaving CalMac. (Image: McGill's Bus Group)

Official records from the Scottish Government's Transport Scotland agency also show that Erik Ostergaard, the chairman of CalMac's parent company, Scottish Government-owned David MacBrayne Ltd, had informed Transport Scotland of the "board's intention to replace the current CEO" on March 25 last year - nine days before Mr Drummond's departure was made public.

It was confirmed that Mr Drummond, who received total remuneration of £238,000 in 2023/24 - including a basic salary of £173,000 and £52,000 in employer's pension contribution - was placed on gardening leave for the duration of his notice period of six months, for which he was paid.

CalMac confidential: The Scottish Government-owned ferry company faces court threat over hidden severance deal (Image: NQ)

Gardening leave is a practice where under normal circumstances during a period of notice instructs them to stay away from the workplace and refrain from performing their regular duties. The employee remains employed and continues to receive their salary and benefits, but is not required to work.

CalMac said that because of the nature of the media coverage at the time of the chief executive's departure, they felt a "duty of care to the individual involved to protect their right to privacy and from further distress". 

Mr Drummond spent six years as CalMac Ferries' chief executive. (Image: Colin Mearns)

A spokeswoman said the company agreed with the Commissioner's view that "every request should be assessed individually on its own merits, and on a case-by-case basis.

The spokeswoman added: “We deal with information requests regularly and are committed to openness and transparency.  

“It is our intention to fully comply with the decision notice issued by the Commissioner and provide the requested information by the designated date.”