IN&M bosses share 18% pay hikes as staff suffer cuts

INDEPENDENT News & Media, which is in the process of shedding jobs from its Dublin newspapers, rewarded its executive directors with an 18% pay rise last year.

The five executive directors shared almost €7 million in salaries, bonuses and other fees, up from €5.88m in 2005, IN&M’s annual report states.

Chief executive Tony O’Reilly saw his pay packet rise by 23%, despite pre-tax profits slipping 8% to €250m. Dr O’Reilly, 70, was paid a paid salary of €942,000 and a bonus of €650,000. When pension contributions and other perks are thrown in, Dr O’Reilly was paid a total of €1.8m.

Ivan Fallon, who runs Independent’s operations in Britain and Northern Ireland, received total pay of €1.43m.

Gavin O’Reilly, the company’s chief operating officer and widely tipped to take over from his father as chief executive, was paid €1.4m, a rise of €138,000.

Vincent Crowley, who heads up the Irish newspaper division where 34 production jobs are going, got an extra €140,000 in 2006. His €1.28m remuneration package includes a basic salary of €581,000 €450,000 bonus.

Independent are outsourcing some sub-editing and production to companies in Dublin and France.

The cost-cutting drive, which some sources believe will lead to another 100 job losses, will set Independent back €17m to cover the 34 voluntary redundancies.

Chief financial officer Donal Buggy’s pay exceeded €1m for the first time.

Independent chairman Brian Hillery, meanwhile, was paid €155,000 in fees for the year.

Former chief executive Liam Healy, who remains a non-executive director, picked up €311,000.

Other directors of the company, who include Senator Maurice Hayes, former British cabinet minister Margaret Jay, and former Canadian Prime Minister Brian Mulroney were paid between €92,000 and €156,000.

Overall board remuneration came to €10.5m in 2006.