Eircom employee scheme payout due

The 14,147 members of the Eircom employee share ownership plan (ESOP) will be issued with a cheque for up to €8,000 today.

ESOP members who received the maximum allocation of shares will have received €95,000 tax-free over the life of the scheme, which is now being wound up.

The payments made to the 14,147 members are as a result of the ESOP distributing the bulk of its Emerald Communications (Cayman) preference shares. This will mean €85m will be distributed to participants.

This will not be the end of payouts to members of the ESOP. The will be a further distribution of €30m of Vodafone shares that will take place before the end of the year.

The ESOP had been due to be wound up by the end of 2014 in an agreement with the Revenue Commissioners.

The examinership process accelerated the winding up of the plan.

The ESOP was one of the main beneficiaries of the mismanagement of Eircom since it was made public in 1999.

The ESOP participated in loading the former state telecom company with €3.6bn.

The chairman of the ESOP James Barrett described the winding up of the plan as the end of an era in a letter to members.

“The primary purpose of the ESOP since its establishment in 1998/9 has been to be a strategic, long-term investor in Eircom, consistent with delivering the best possible outcome for its beneficiaries.

“The recent restructuring of Eircom brings to an end a 13-year period for the ESOP as Eircom’s longest continuing shareholder,” said Mr Barrett.