Kingspan chief executive’s salary increase of 46%

THE chief executive of building materials group Kingspan received a 46% pay hike last year.

The company’s annual report for 2007 reveal Gene Murtagh, son of Kingspan founder Eugene Murtagh, was paid €1.26 million, an increase of almost €400,000 on his 2006 remuneration.

Mr Murtagh, 36, was paid a basic salary of €595,000 and a bonus of €575,000, plus pension contributions and benefits.

Kingspan’s finance director Dermot Mulvihill was paid a total of €1.15m, an increase of 28% on 2006.

Brendan Murtagh, co-founder of Kingspan, saw his pay decline to €804,000 from €1.11m, after he stood down as an executive director.

Overall, pay for Kingspan’s executive directors increased to €5.5m in 2007 from €4.2m.

Eugene Murtagh, who remains chairman of the group, was paid fees of €177,000.

In March Kingspan announced a 21% rise in pre-tax profits for 2007 to 224m as turnover rose 27% to €1.8 billion.

Separately, the annual report for paper and packaging giant Smurfit reveals bosses were paid €5.8m in 2007, down from €6.2m in the previous year.

Smurfit chief executive Gary McGann received €2.59m, up €19,000.

Finance director Ian Curley saw his pay fall €172,000 to €1.5m and chief operating officer Anthony Smurfit received €1.77m, down €256,000.

However, the three shared €5.3m in June 2007 in special payments for leading the company back onto the stock market.

The money was paid by Madison Dearborn, the US private house that acquired Smurfit in 2002.

The report also confirms last year’s compensation deal that saw Dr Michael Smurfit leave the company after 50 years. He received a total of €9.7m.

Sean Fitzpatrick, the former Anglo Irish Bank chief executive, who succeeded Dr Smurfit as chairman was paid €250,000 in fees.