FORMER CC chief executive Maurice Pratt received €2.19 million from the ailing drinks firm when his contract was terminated last year following a collapse in its share price as sales and profits declined.
CC paid a total of €5.32 million to Mr Pratt and three senior colleagues who also left, in payments classified under “compensation for loss of office” in its newly published annual report.
The firm subsequently recruited a new management team led by the former chief executive of rival drinks firm Scottish Newcastle, John Dunsmore.
Brendan McGuinness, former managing director of the cider division, received €1.26 million “on termination” when he retired from the board in April 2008.
Brendan Dwan, former finance director, received €1.08 million “on termination” in May 2009 as part of a €1.64 million remuneration package. James Muldowney, former director of strategy and development, received a €658,000 termination payment as part of an €831,000 remuneration package and a separate pension “augmentation” costing €135,000.
These payments were made public by CC as its chairman,Tony O’Brien, said in the annual report that the response of Mr Pratt’s team to the challenges it faced was “less than” satisfactory.
On the appointment of Mr Dunsmore and two other former Scottish Newcastle executives to CC, Mr O’Brien said “it was necessary to terminate the contracts of the former team, which was costly”. This cast new light on the departure of Mr Pratt, who said when leaving in October that he decided to “stand aside” to allow a new chief to bring fresh thinking and impetus to the business.
Mr Pratt received a termination payment of €1.73 million and a separate pension “augmentation” of €452,000. He also received €572,000 salary, €197,000 pension allowance, €22,000 in other remuneration and benefits in kind of €18,000.
The architect of CC’s flotation, Mr Pratt saw the firm’s shares reach almost €14 in 2007 before declining drastically as a drive to build up its Magners cider brand in Britain fell foul of bad summer weather and increased competition from Scottish Newcastle.
CC shares, which traded below €1.50 as Mr Pratt left the company, closed last night at €2.42, up four cent.
“The conclusions of the remuneration committee were that the company was legally obliged to pay these sums,” Mr O’Brien said.
