Garo Armen, the man who supervised the rescue of Irish pharmaceutical group Elan, will step down from the group's board in May. Dr Armen (53), who took over after the resignation of Donal Geaney in the wake of a share price collapse that was fuelled by concerns over the company's accounting practices, is one of the longest serving directors at Elan, having been appointed in 1994.
Fellow director Kevin McIntyre (70) will also retire at the company's annual general meeting. He was appointed a director of Elan in February 1984, when the company was first floated.
The group's annual report, filed yesterday with the Securities and Exchange Commission, shows Elan's four executive directors shared almost $4 million (€3.3 million) in remuneration last year. Chief executive Kelly Martin received a total package of $1,793,315, almost double the 2004 figure. However, Mr Martin waived his 2004 bonus in lieu of share options.
Dr Lars Ekman, the group's head of R&D, was the second-highest paid executive, with a package of $775,881, comprising salary of $265,529, a bonus of $233,333, benefit in kind of $270,833 and a $6,186 pension contribution.
Chief financial officer Shane Cooke received a package of $748,505, of which $357,900 was salary and the balance a bonus. Company secretary William Daniel was paid a salary of $396,409 in a total package of $668,265. Fourteen non-executive directors, who serviced at different times through the year, shared a total of $1.084 million in fees, headed by chairman Kyran McLaughlin who was paid $300,000. On average, the company had 11 non-executive board members in 2005.
The accounts also include details of the company's $4,375,000 legal settlement, with former chairman and chief executive Donal Geaney, who has since died. Elan continues to make pension payments to three former directors - Donald Panoz, Nancy Panoz and John Groom - amounting to $147,000.
