C&C directors’ pay package outstrips other leading companies at 38%

EXECUTIVE directors at drinks and snack company C&C received a 38% increase in pay and benefits last year with chief executive Maurice Pratt’s pay package hitting €1.14 million, up 36%.

C&C’s 2005 annual report, covering the year to the end of February and its first as a listed company, was circulated to shareholders this week. It shows that the company’s four executive directors’ total remuneration increased from €1.98m in 2003 to €2.73m last year, a 38% increase.

The increase is well above the 27% rise CRH bosses received; the 21% pay increase AIB’s executive directors were awarded; the 7.7% pay hike executive directors of Irish Life & Permanent & received, and Kerry Group’s executives’ 11% pay rise in 2004. All pay increases far exceeded the 3% rise ordinary workers enjoyed under Sustaining Progress in 2004. C&C boss Maurice Pratt’s remuneration package comprised a basic salary of €551,000, benefits-in-kind (BIK) and other pay of €27,000, an annual bonus of €404,000 and pension contributions of €158,000 to deliver a total of €1.14m (2003: €836,000).

C&C’s alcohol managing director Brendan McGuinness was the company’s second highest paid executive director earning a total of €569,000 (€413,000). This was made up of basic pay of €275,000, BIK €20,000, annual bonus €195,000, and pension €79,000.

Company chairman Tony O’Brien received €208,000 in fees and benefits, down from €412,000 in 2003. Non-executives’ total pay costs came to €495,000 with all those other than Mr O’Brien receiving a basic €42,000 but directors John Horgan and Phillip Lynch received an extra €17,000 in “other fees.”

Staff numbers at C&C fell to 1,831 in 2004 following the disposal of Italian subsidiary Barbero 1891 SpA. The average employee cost including pay, social welfare and pension contributions was €47,351.17 (€44,832.75), a 5.61% increase.

Under exceptional items the report reveals C&C employees shared free shares to the value of €22m to coincide with the initial public offering (IPO) of shares.

This works out at an average of €12,015.29 per employee based on the staff numbers in the annual report. The cost of the shares were provided for in 2004. The cost of the IPO came to €3.3m in 2005 (€1.1m). However, these items generated a net tax credit of €2.5m (€1.1m).

The report shows company auditors KPMG received €300,000 for audit services in 2005, down from €500,000 in the year the company floated on the Stock Exchange. The report said that C&C’s AGM takes place on July 8.