Kerry chief gets 96.7% pay hike

KERRY Group’s executive directors enjoyed remuneration increases of 15% to 18% on the back of a strong year’s performance the annual report, posted out to shareholders yesterday, reveals.

There was one exception. Gerry Behan, president and chief executive of Kerry Ingredients and Flavours for the Americas region, saw his pay package jump 96.7% from €575,000 to €1.131m. Mr Behan’s remuneration featured a €603,000 performance-related payment on top of his basic salary of €465,000 plus BIK and pension.

This overall payment reflected the group’s exceptional performance in the Americas region. The group’s ingredients and flavours businesses saw trading profit grow by 4.9% to €340m, with a 90 basis points improvement in trading profit margin to 10.4%.

Revenues in the Americas region at €1,287m was down -5.2%, but this incorporated a business restructuring programme and 4.2% lower pricing due to favourable raw material costs.

As Kerry’s director of corporate affairs, Frank Hayes, explains: “The Americas region enjoyed a very good business margin, and that is reflected in the performance-related payment. It was an excellent performance.

“The executive directors’ remuneration is performance-related. The 2009 payments recognise strong business growth last year. If the business growth for 2010 only matches 2009, then there will be no payment increases to directors next year. We’re a public company and we’re here to serve our shareholders.”

Along with Mr Behan, Kerry’s three other executive directors are group chief executive Stan McCarthy, group chief financial officer Brian Mehigan and Kerry Foods chief executive Flor Healy.

Mr McCarthy’s remuneration rose from €1.525m in 2008 to €1.751 (+14.8%) in 2009, with a performance payment of €833,000 plus BIK and pension.

Mr Mehigan’s overall package rose from €846,000 to €978,000 (+15.6%), incorporating a €426,000 performance bonus and a basic of €460,000, plus BIK and pension. Flor Healy’s remuneration rose from €896,000 to €1.063m (+18.64%), with a €500,000 basic plus a €481,000 performance bonus, plus BIK and pension on top.