Directors' great payout from bookies

DIRECTORS at Paddy Power receive a 35% pay rise last year but employees at the bookmakers saw their average pay increase by 19%.

Figures released in Paddy Power plc's annual report for 2002 show total directors pay costs including fees, salaries, pensions costs, benefits and bonuses came to €1.63m in 2002 compared to €1.2m in 2001 - a 35% increase.

Employee pay costs rose to €25.4m in 2002 from €18.8m in 2001 as staff numbers rose to 856 from 757. However, the average employee costs, including wages, social welfare and pensions costs rose to €29,653, up 19% on the €24,941 figure for 2001.

Chief executive John O'Reilly, appointed in June of 2002, was the top earner in the company with his €514,000 package beating fellow director Stewart Kenny by €1,000.

Mr O'Reilly received a bonus of €213,000 which boosted his pay. The bulk of Mr Kenny's pay in 2002 came in pension payments which came to €322,000 of his total pay package of €513,000. He also has options on 720,000 shares which he can buy at €1.16 at any time between now and May 2006.

Mr Kenny already holds 1.86m Paddy Power shares, which yesterday traded at €5. In 2001 he held 3.48m. Mr O'Reilly has options on 900,000 shares at the same price over the same period, while director Ross Ivers has options on 322,466 shares at €3.59 each which can be exercised from August 1, 2004 to August 1, 2007. Mr O'Reilly holds 614,000 shares; Mr Ivers 1,007.

John Corcoran is the board's largest shareholder with 5m shares, while David Power has 4.9m.