Top executives at Irish-listed property investor Yew Grove saw their overall financial packages quadruple last year.
In the company’s annual report, published on Friday, the salaries of Yew Grove’s three executive directors is set at €250,000 per annum. However, each of them – chief executive Jonathan Laredo, chief financial officer Charles Peach, and chief investment officer Michael Gibbons – has agreed to waive half of that sum until the share capital issued by the company equals €175 million.
On top of their salaries, all three received a bonus of €205,000 last year, as well as pension contributions of €37,500 and other benefits.
Mr Laredo’s total package was worth €371,800, which was up from €93,000 in 2018, while Mr Peach’s package was worth €371,000, which was up from €92,000 in 2018. Mr Gibbons saw his package increase from €101,000 in 2018 to €384,600 last year.
Performance targets
The company’s annual report said bonuses are designed to reward executives for the delivery of annually agreed objectives and performance targets. The maximum bonus for each of the executive directors is 100 per cent of salary.
Targets are set each year for the CFO and CIO by the CEO, and for the CEO by the chairman, and each is assessed and approved by the remuneration committee.
For 2019, 70 per cent of the bonuses were based on the achievement of “challenging dividend per share targets” and the balance was based on individual performance against objectives set for the executives by the CEO and with objectives for the CEO being set by the board.
In terms of pensions, contributions to the company scheme are set at 15 per cent of salary. These pension contributions are in line with the contribution level provided to other employees of the company.
The company also operates a long-term incentive plan where awards of 150 per cent of salary are made to each of the executives. The awards are designed to “reward executive directors for the delivery of long-term performance and align their interests with those of shareholders”.
Profit
Non-executive director Barry O’Dowd saw his fees double last year to €80,000. The other non-executive directors – Garry O’Dea, Eimear Moloney, and Brian Owens – earned fees of €50,000, up from €28,000 the previous year.
In previously published annual results, net rental income at Yew Grove increased by 267 per cent in 2019, while profit more than doubled from 2.3 million to €5 million.
The company’s property portfolio grew from €77.9 million to €115.8 million following the acquisition of six buildings in Waterford, Cork and Athlone. The company said it would pay shareholders a dividend of 6.75 cent per share.
