Support services group DCC paid out over €3m in performance-related bonuses to its top three executives last year, driving combined executive pay levels up from €8.54m to just under €11.5m.
The bonus move amounted to a 71.3% jump and followed a strong year of acquisition-led growth for the Dublin-headquartered business.
Since the turn of the year DCC has made three large acquisitions including the recent agreement to buy Shell’s commercial fuel business in Hong Kong and Macau; the €140m deal marking DCC’s first expansion in the energy services market outside of Europe.
Last month, the London-listed and sterling-denominated DCC reported a 17.4% increase in annual revenues, for the year to the end of March, to £12.3bn (€14bn), with operating profit increasing by 21% to £345m, adjusted earnings per share up 18% at 286.59p and pre-tax profits up by 22.5% at £248.5m.
It also recently announced that Tommy Breen will be stepping down as chief executive after nine years, in July, to be replaced by Donal Murphy, current head of DCC’s energy division.
The group’s newly-published annual report shows that Mr Breen’s remuneration package jumped from €4.3m to €5.32m, driven by a 54.5% bonus increase to €1.36m.
Mr Murphy’s package jumped from €1.95m to just under €2.78m. His bonus payment went from €440,000 to €839,000.
Chief financial officer Fergal O’Dwyer’s remuneration jumped from just over €2.3m to €3.39m; helped by a near €400,000 jump in performance-related bonus to €839,000.
The combined value of long-term incentive plans for DCC’s executive director team increased from €3.47m to €5.12m.
DCC recently said it expects to see “another year of profit growth and development” in the year to the end of next March, reiterating that it has the capacity and opportunity for further development. More Asian-based takeover deals are expected as the group looks to expand its presence in the Far East. The group also recently announced the £219m (€256.5m) sale of its non-core environmental division to private equity firm Exponent.
Meanwhile, DCC’s nine-member non-executive director team – which includes former Glanbia chief John Moloney and former Ulster Bank boss and Paddy Power finance director Cormac McCarthy — shared a payment total of €786,000 in the group’s last financial year, a €50,000 increase on the previous year.
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