Eircom's four executive directors - Dr Philip Nolan, Mr Peter Lynch, Mr Cathal Magee and Mr David McRedmond - will together have reaped a total of €29 million from the company by the time it floats.
The flotation prospectus, published yesterday, shows that the largest package of €13.06 million will go to Eircom's chief executive, Dr Nolan, who joined the company at the start of 2002. He has since drawn remuneration of some €9.2 million from his position.
He will make gains of about €3.9 million on shares he owns when the company is floated, with the prospectus outlining his plan to liquidise €1.1 million of this by selling shares as part of the initial public offering (IPO).
Some €7.2 million of his overall gain was paid in the nine months to December 31st, when Dr Nolan received €4.3 million in a bonus linked to the firm's refinancing.
While the prospectus does not outline the share options that will be due to Dr Nolan after the flotation, it does reveal that his basic future annual salary will be €707,000, with half of this again to be paid into his pension.
He will also qualify for an annual bonus of €707,000 if the company meets its financial targets and will be awarded share options.
Eircom's chief financial officer, Mr Lynch, will have netted close to €5.7 million from his position since the start of 2001. About €4.6 million of this will have come from his remuneration package, amounting to €2.8 million in the nine months to December 31st alone. Mr Lynch received €2.1 million in his refinancing bonus, also counted as part of remuneration.
He is expected to make a gain of about €1 million on his shares under the IPO, with some €226,607 of this to be translated into cash by selling a block of shares under the offer.
Mr Lynch will begin next year on a basic salary of €466,000, plus a possible 75 per cent bonus.
Mr Magee, who heads Eircom's retail business, will have taken rewards of about €5.8 million out of the company between 2000 and the flotation date. His pay packet accounted for €4.8 million of the total, with a €2 million refinancing bonus boosting this significantly.
He takes about €1 million in shares into the flotation and will realise €226,000 of this by selling stock.
Mr Magee's basic salary will also be €466,400 and he qualifies for a bonus of up to 75 per cent and share options.
Fellow executive Mr McRedmond, Eircom's commercial director, will have drawn about €4.6 million from the company since joining after it was taken private.
About €3.8 million of this is due to salary and bonus payments, with his refinancing payout amounting to €1.6 million. His shares will be worth €50,000 at the flotation date, with his basic salary for 2004 set at €330,000.
Eircom deputy chairman and secretary general of the Communications Workers Union, Mr Con Scanlon, will gain about €562,000 on his shares at the flotation date. He will take €229,635 in cash at that time and will be due annual fees of €106,000 in the future.
A pension payment of €1 million has also been negotiated, as well as a a lump sum of €210,275 in return for waiving another pension entitlement.
Fellow non-executive, Mr John Conroy of Merrion Stockbrokers, will gain €187,500, on his shares, taking €76,500 of this amount in cash.
