U2 firm paid five employees €18m in wages last year

Five people employed by one of rock band U2's companies shared almost €18 million in wages last year, the firm's accounts show…

Five people employed by one of rock band U2's companies shared almost €18 million in wages last year, the firm's accounts show. Barry O'Halloranreports.

It could not be confirmed yesterday if the band's members - Bono, the Edge, Larry Mullen and Adam Clayton, and their manager Paul McGuinness - were the people paid by the company, as the accounts do not name the employees.

A representative of U2's London-based management company refused to comment on the accounts yesterday.

Figures just lodged with the Companies Office by U2 Ltd, which controls rights to the band's music, show that its five staff earned salaries of €17.96 million.

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U2 and the band's accountant and manager, Paul McGuinness, are involved in a number of businesses and ventures.

Their personal wealth is privately managed and is estimated to be in the region of €600 million.

The four band members own U2 Ltd through another company, Not Us Ltd, in which they each have a 25 per cent share.

According to the accounts, U2 Ltd makes money from licensing the band's music copyright, which entitles it to be paid for the sale, reproduction and broadcast of its music.

After the calculation of wages and other costs, the accounts show that U2 Ltd had operating profits of €5.4 million in 2006, compared with a loss of €5.9 million the year before.

Its profits before tax came to €4.6 million and it paid €765,578 in tax, leaving it with €3.84 million in profits for the year.

U2 Ltd was one of a number of companies involved in managing the band's recording and publishing interests that reportedly moved to the Netherlands last year after the Government capped tax-free earnings for artists at €250,000.

Taxes on royalties paid to artists and performers for use of their material are close to zero in the Netherlands. Bono drew particular criticism when the move became known, as people believed it did not tally with his calls on governments to give more cash aid to developing countries.

U2 Ltd's directors are named in the accounts as Jan Favié, an Amsterdam-based accountant, Dutch lawyer Roelof Kloeten, and Irish accountant Gaby Smith.