IN&M directors' pay rises €2.26m as pensions slump

TOTAL payment to the executive directors of Independent News & Media rose sharply from €4.5 million in 2001 to €6.76m for last year.

According to the 2002 annual report the group pension fund recorded a shortfall of €66m against €15.2m, reflecting the continuing downturn in equity markets. Accompanying notes with the accounts show the group is forecasting a long-term rate of return on equities at 7.7% against an assumed return of 8.3% the previous year.

Overall, the total deficit at the year end on the pensions front was €75.6m.

With stock markets in turmoil for the past three years, pension deficits have emerged in many Irish companies and the Indo is no exception. On the remuneration front it has emerged that executive chairman Tony O’Reilly’s pay was frozen for the year at €876,0000 comprising €800,000 in salary and €76,000 in fees. There was no annual bonus and no benefit in kind included in the package.

Gavin O’Reilly, chief operating officer of the group, came out of the pay stakes somewhat better than his father with an increase in his overall pay packet up from €440,000 to €659,000 for the 12 months.

The huge pay-out of the year within the group went to JC Sanders of APN Newspapers, who took a total of more than €1.5m in various payments last year, the bulk of which was an early retirement package as Mr Sanders had suffered ill health.

David Palmer got a total remuneration package of €954,000 against €418,000 in 2001. Vincent Crowley, chief executive, saw his pay rise from €543,000 to €805,000, boosted by a bonus of €150,000. Mr Crowley was the only executive within the group to benefit from a bonus last year, according to the annual report and accounts.

In 2002 the group suffered a loss per share of 7.30c against modest earnings of 0.59c in 2001. Due to the slowdown in the economy the earnings per share (EPS) high of the past 10 years to 2002 peaked at 15.70c in 2000 but has fallen sharply ever since.

In the past two years the EPS dipped as multimedia companies went out of fashion and the group faced serious write-offs on investments.

Nearly €200m was written off last year in interest and exceptional items which dragged down earnings performance overall. At operating level, however, profits rose modestly from €219.9m to €223.2 justifying an increased dividend of 8.15c up from 7.75c.