Shareholders grill Greencore executives

GREENCORE’S top brass got a grilling from disgruntled shareholders at yesterday’s AGM who questioned the poor share price performance and the level of financial rewards paid to the chairman and the chief executive.

On the way into the meeting at Jurys Hotel in Dublin, the directors were met by a picket of angry placard carrying Greencore pensioners upset at the erosion of their pension rights. Their placards suggested they were the victims of earlier bad investments in Imperial Holly and profit performance in recent years.

Once the meeting was thrown open shareholders questioned the outgoing chairman, Tony Barry, about his remuneration of €100,000 for his last year as chairman. And they wanted to know why the chief executive got a 20% increase last year.

In his own case Mr Barry said the previous year’s figure covered only part of a year while in the current year his payment was for a full year in office. He added the level of salary was in line with the going rate for such a post.

In the case of Mr Dilger the outgoing chairman said: “He was an excellent chief executive officer. I make no apologies whatsoever for paying him commensurately for that performance,” he said.

Mr Barry was also questioned why the directors took such few share options in the company. “Was it not a sign of a lack of confidence in the business?” asked another shareholder.

That was a “private mater for individual directors, I have spoken on that in the past and will not do so again,” he said. On the poor share price Mr Barry said they were not happy with the share price which was a result of past performance and was a function of poor market conditions.

Some Greenshare members asked a number of questions about the overall state of the company. In particular, they expressed concern that goodwill was significantly higher than the net assets of the company. Shareholders were told this would be so when Hazelwood was taken over at the end of 2001. “They voted in that knowledge,” said David Dilger, chief executive.

Mr Barry took a number of question on the pension funds that were amalgamated some time ago. This was done after independent financial advice and with the agreement of both sets of trustees, he said. It had also been passed by the Pensions Board.

One former worker said the merger was done without consultation, and had been vehemently opposed by some trustees.

Mr Barry said the process was painstakingly carried out. It saved money for the company and that was in the best interest of shareholders and pensioners. He rejected any suggestion any pensioner was worse off as a result of the merging of the staff and manual workers’ pensions.

It emerged also the group is to sell 80 acres of land where its subsidiary Amer Salmon is located in Carlow. That will fetch €10m. Amer Salmon was involved in producing beet harvesters but now designs beet harvesting equipment. It is now a ‘virtual company’ contributing little to turnover or profits.

It may be relocated or shut down which ever is most expedient, said Mr Dilger. But he stressed the €10m capital gain from the sale of the land was far more significant to the group than the former beet harvester operation.