Eircom chief paid €5.6m in past year

EIRCOM chief executive Philip Nolan was paid €5.6 million in the past year, the company’s annual report reveals.

Dr Nolan, who joined Eircom early in 2002, was paid a basic salary of €707,000, but a performance bonus of €2.8 million and a signing-on fee of €1.65 million brought his total pay to €5.6m, making him the highest paid executive of a public company in Ireland.

The annual report, for the year to end March 2004, said the bonus payments were made to compensate Dr Nolan for leading the reorganisation and refinancing the group prior to its flotation earlier this year.

Peter Lynch, the company’s finance chief, was paid €2.13 million in bonuses. His full pay for the year was not disclosed as he only become a director in March of this year.

Cathal Magee, who heads eircom’s retail business, netted €2.03 million in bonuses. Again his total package was not published as he was not a board member for the full year.

Eircom’s commercial director David McRedmond received a bonus €1.6 million.

Con Scanlon, former head of the Communications Workers’ Union, who is Eircom’s vice-chairman was paid a total of €687,250, made up of fees of €106,000 and other benefits of €581,250.

Eircom chairman Tony O’Reilly was paid €132,500 in fees for his part-time role.

Another director, John Conroy, received a total of €241,914, up from €45,000. He was paid fees of €48,164 and other benefits of €193,750. Mr Conroy runs the Merrion Capital Group, advisers to the eircom employee share ownership trust ESOT, who own 29% of the company.

The company’s new non-executive directors, which include Maurice Pratt and Irial Finan, were paid €1,442. Again this was because they joined the board in mid-March.

The company’s six former non-executive directors were paid €46,722 each.

Since its flotation earlier this year eircom shares have yet to trade above their initial offer price of €1.55.