SMURFIT KAPPA chief executive Gary McGann received an 18.3 per cent increase in his remuneration last year to €2.64 million, according to the paper and packaging company’s annual report.
However, shareholders were not paid a dividend as the company continued to focus on reducing its net debt.
Mr McGann’s basic salary was unchanged at €1.26 million. But his annual bonus jumped to €692,000 last year from €284,000 in 2009 as the company returned to the black with a profit of €58 million.
His pension payment of €625,000 was unchanged while his other benefits of €61,000 was just €1,000 higher than in 2009.
Of his pension payment, Mr McGann received €325,000 as a “supplementary taxable non-pensionable cash allowance”.
Under the terms of Smurfit Kappa’s bonus scheme for executive directors, Mr McGann could have received up to 100 per cent of his salary if certain targets were met.
Mr McGann is a former director of Anglo Irish Bank from the time that Seán FitzPatrick and David Drumm were at the helm. He resigned his position when the bank fell into State control.
The remuneration of Tony Smurfit, the chief operations officer, increased by 21.6 per cent to €1.68 million.
This comprised a basic salary of €874,000; an annual bonus of €479,000; a pension payment of €311,000; and other benefits of €22,000.
Mr Smurfit’s bonus more than doubled from the €196,000 payment he received in 2009.
Finance director Ian Curley was paid €1.47 million last year, a rise of 18.8 per cent on 2009.
Mr Curley received a basic salary of €746,000, an annual bonus of €410,000, a pension payment of €263,000 and other benefits of €57,000.
His bonus also more than doubled in the period, from the €187,000 he was paid in 2009.
In total, the remuneration of Smurfit’s three executive directors rose by €1 million last year to €5.8 million.
Chairman Liam O’Mahony’s remuneration was unchanged last year at €300,000.
Pay to non-executive directors rose slightly to €1.32 million.
The annual report also states that Smurfit Kappa purchased about 39,000 tonnes of paper from Savon Sellu, a company controlled by Dermot Smurfit, Dr Michael Smurfit – a former chairman of the group – and Alan Smurfit. This purchase amounted to €17 million.
