IRISH NATIONWIDE chief executive Michael Fingleton received a 26 per cent pay rise in 2007, earning €2.313 million - €477,000 more than in 2006 - on the back of a 64 per cent increase in pretax profits to €391 million at the building society last year.
Mr Fingleton's salary rose to €812,000 in 2007 from €738,000, while his bonus increased by more than a third to €1.4 million from €1 million, according to the society's 2007 annual report.
Fees of €53,000 and benefits of €48,000 brought his 2007 pay to €2.313 million. Mr Fingleton's pay has more than doubled since 2004.
He did not receive any pension contribution in 2007. The building society contributed €388,000 to his pension the previous year.
The society's other executive director, Stan Purcell, earned €486,000, up from €407,000 in 2006. He received a pension contribution of €492,000 during the year, up from €63,000 in 2006.
Total remuneration to directors rose to €3.498 million in 2007 from €2.886 million. Directors' fees rose to €492,000 from €451,000. Chairman Michael Walsh received €100,430 in 2007.
Mr Fingleton was paid more in 2007 than AIB chief executive Eugene Sheehy, who earned €2.1 million, down 14 per cent from 2006. AIB earned pretax profits of €2.5 billion in 2007.
Anglo Irish Bank chief executive David Drumm was paid €3.274 million in the year to September 30th, 2007, when the bank made pretax profits of €1.243 billion, a 46 per cent rise on 2006.
EBS Building Society chief executive Fergus Murphy is being paid an annual salary of €490,000 but could receive up to €1 million with bonuses and benefits. His predecessor, Ted McGovern, received a €1.87 million severance package last year, in addition to a payment package of €677,000 he received in 2007. Mr McGovern retired from the society last September.
Irish Nationwide has delayed its planned demutualisation and sale because the market turmoil has driven down the value of financial institutions.
However, it remains "fully committed to a sale", subject to it "achieving a price which fairly reflects the value of the society's business," according to its annual report. The society says it has a net value of more than €1.5 billion.
Mr Fingleton stepped down as a director of the society when he turned 70 in January but has remained on as chief executive.
The building society's 2007 profit was boosted by a profit of €41 million from the sale of its 51 per cent stake in Clearstorm, a UK property development company.
Irish Nationwide's directors said in their 2007 report that the society's objective was "to continue to build up significant income streams based on secured property lending, avoiding the distraction of engaging in general retail banking business and unsecured lending operations".
Almost 80 per cent of loans are on commercial property. Some 53 per cent of the loan book relates to commercial mortgages in the UK, with 34 per cent in London. Some 37 per cent of loans are on commercial property in Ireland.
The building society wrote off €25.3 million in specific bad loans in 2007, compared to €900,000 the previous year. Mr Fingleton has said the building society had taken "adequate provisions" for loans to solicitors Michael Lynn and Thomas Byrne. The impaired loan charge increased to €48.8 million in 2007 from €17.6 million.
Irish Nationwide's agm takes place in Dublin on April 29th.
