The take-home pay of Eircom's senior executive team and board of directors rose by 8.6 per cent to €4.43 million last year as the former State phone company came into play as a takeover target.
Details of the increase in remuneration, which was more than twice the rate of inflation in the same period, appear in the company's annual report for the year to March. It shows that Eircom's five executive directors received more than €3.66 million last year.
The annual report was circulated last evening ahead of the publication this morning of the scheme of arrangement for the €2.36 million takeover by Australian financiers Babcock & Brown and the Eircom employee share ownership trust (Esot).
The highest earner was Eircom chief executive Dr Phil Nolan, who received €1.4 million. This sum, including a €581,606 bonus, was up from €1.29 million in the previous year. The 2.55 million Eircom shares held by Dr Nolan at the end of March are worth €5.75 million under the terms of current offer for the company, which comprises a payment of €2.20 per share and an interim dividend of 5.2 cent. He also holds options over 1.09 million shares. Eircom's outgoing chairman, Sir Anthony O'Reilly, received remuneration of €132,000 last year. No longer a shareholder, he will stand down when the takeover is complete.
Company vice-chairman and Esot chairman Con Scanlon received pay of €106,000. The 330,437 Eircom shares he held at the end of March are worth €744,144 in the current offer. Mr Scanlon will stay on as vice-chairman under after the Babcock & Brown deal, which will see the Esot increase its stake to 35 per cent from 20 per cent.
The pay of chief financial officer Peter Lynch rose to €841,503 last year from €781,324. This included a €297,305 bonus. His 945,774 shares are worth €2.13 million under the offer and he has options over the another 742,797 shares.
The pay of Cathal Magee, managing director of Eircom's retail unit, rose to €831,078 after he received a €287,605 bonus. His pay in the previous year was €775,490. Mr Magee's 891,971 shares are worth €2.01 million in the offer and he has options over another 701,126 shares.
Commercial director David McRedmond saw his pay rise to €593,366 from €548,637 after he received a €200,500 bonus. His 669,863 share worth €1.51 million in the offer and he holds options over another 505,711 shares.
Seven non-executive directors each received €75,000 (but did not benefit from an increase). John Conroy, chief executive of Merrion Capital, Didier Delepine, a consultant, and Irian Finan, Coca Cola vice-president, are among the non-executive directors.
