THE CHIEF executive of paper and packaging company Smurfit Kappa, Gary McGann, was paid just under €2.6 million in 2007, less than 1 per cent more than his pay the previous year, according to its annual report.

The company's two other executive directors, Anthony Smurfit and Ian Curley, took 12 per cent and 10 per cent pay cuts in 2007, earning €1.77 million and €1.5 million respectively.

Remuneration paid to the three executive directors totalled €5.8 million in 2007, down 6 per cent from €6.2 million.

The executive directors were also paid €5.3 million by the company's two major shareholders, Madison Dearborn and Smurfit Kappa Feeder, in June 2007 for the company's successful flotation.

The company confirmed that Dr Michael Smurfit, who resigned from all positions within the company ahead of its stock market flotation in Dublin and London last year, received €9 million in compensation for loss of office in addition to his annual salary of €688,000, bringing his total payments for 2007 to €9.7 million.

Mr McGann's €2.59 million pay included a salary of €1.2 million, a bonus of €842 million, a pension contribution of €485,000 and benefits of €64,000.

Fees paid to non-executive directors totalled €2.34 million in 2007, down from €3.8 million. Company chairman Sean Fitzpatrick earned fees of €250,000.

The annual report showed that share-based payments by the company more than trebled to €24.7 million in 2007.

Smurfit Kappa reported pretax profits of €170 million for 2007, compared to a loss of €143 million the previous year, in its first full-year results since its flotation in March of last year.

Revenue rose 4 per cent to €7.27 billion in 2007. The company is forecasting modest growth this year.

Shares in Smurfit Kappa were down 1.1 per cent to €7.98 in Dublin yesterday.