By mark paul from Irish Times

Former senior executive claims she is owed $3 million in unpaid share options

Digicel and former group chief executive deny allegation of sexual harassment.

Digicel, the Caribbean mobile phone company owned by Denis O’Brien, has become embroiled in an acrimonious court case with a former senior executive who alleges she is owed close to $3 million in unpaid share options.

Jean Blackstock, who was Digicel’s group head of human resources until 2004, is suing the company in the Supreme Court of Jamaica, where it was founded and is headquartered. The company denies it owes her any money.

In evidence presented to the court as part of the financial dispute, Ms Blackstock also alleges she was sexually harassed more than a decade ago by Seamus Lynch, the former group chief executive who now oversees Digicel’s Pacific business and sits on its main board.

Both Digicel and Mr Lynch strenuously deny there is any truth to this allegation and the company has filed documents with the Jamaican courts in which it strongly rejects this aspect of her claim. “[Digicel] will show that there existed a proper and professional relationship between [Ms Blackstock] and Seamus Lynch during the course of her employment . . . and afterwards,” Digicel has told the court.

Ms Blackstock, who now runs a human resources consultancy registered in Britain, joined Digicel in 2000 prior to the establishment of the business. She resigned in March 2004. The company told the court she continued to do ad-hoc consultancy work for Digicel until 2005.

Ms Blackstock claims the share options at the time of her departure were worth about $3.3 million. The company contends that under the rules of the plan all managers who resigned at around this time – 11 in total – had their share options cancelled and received cash payments instead.

Cash-in amount Following the end of her consultancy work towards the end of 2005, Ms Blackstock’s share options were also cancelled and she was paid $573,000, which Digicel argues was the proper cash-in amount under the rules.

In early 2006 she wrote to Digicel chairman Denis O’Brien suggesting she should be due a higher payout. She also emailed other executives arguing she had been told her options would not be cancelled, which Digicel denied.

Ms Blackstock met a board member over her grievance in 2007 and was subsequently paid a further $30,000 related to her consultancy work.

She continued to maintain contact with members of Digicel’s board. The company told the court it helped her to gain a seat on the board of a charity in 2009 and provided her with references. In November 2010 Ms Blackstock again made contact with Digicel and Mr O’Brien to reiterate her share options claim arising from her resignation six years previously. She also made the allegation concerning Mr Lynch, and Digicel told the court that was the first it had heard of it.

Ms Blackstock indicated the alleged harassment had in fact contributed to her decision to depart from Digicel. In addition to suing it over her share options, she is also suing it for alleged wrongful dismissal and “emotional distress”.

The case is due back before the courts in October. Ms Blackstock could not be reached at the Oxford address listed for her business.

In a statement to The Irish Times, Digicel expressed concern that the reputation of Mr Lynch had been raised in the context of a financial dispute.

“These allegations will be shown to be without any substance or merit by the Jamaican courts. Digicel emphatically rejects all of the claims and very much regrets that it is forced to defend itself publicly against serious allegations of this nature in the context of a refusal to accede to [financial demands].”

The company continued: “Digicel is disturbed at the inappropriate and unfounded accusations being levelled at one of its senior staff and would like to make it clear that Digicel stands by that staff member and will do everything in its power to ensure that their good name remains intact.”