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Just seen this and it made me SICK! Eircom GRRRRRRRR!

  • 28-11-2001 11:07pm
    #1
    MS
    Closed Accounts Posts: 183 ✭✭


    November 27, 2001
    Group’s directors receive €500,000 sale bonus


    By Ian Guider
    EIRCOM directors will pocket handsome bonuses after sale of the telecoms firm to Valentia.
    The board resigned just over a week ago as Valentia installed its own directors and chief executive. The board receive payments of up to equal their fees from Eircom. In total they shared around €500,000.

    Former EU commissioner and chairman Ray MacSharry will receive the largest bonus of £100,000 on top of his £110,000 fees.

    Deputy chairman and DCC chief executive Jim Flavin will get a bonus of £75,000 to add to his £78,000 annual fee, and non-executive director Pat Molloy receives a bonus of £50,000, plus his fee of £41,000.

    The additional fees were reported paid about 10 days ago when the board stepped down, for work performed as a result of the takeover, and were approved by the Irish Takeover Panel.

    Non-executive directors received a £30,000 bonus each, bringing the total expenditure on the bonus to £400,000, or nearly €500,000.

    Valentia’s new chief executive and most board appointments have been made. The board includes members of the finance houses which backed the deal, Tony O’Reilly as chairman, Philip Nolan as chief executive.

    The payments are bound to enrage former shareholders who have been receiving their cash for their shares. Their shares are worth around 25 to 30% below what they paid for them, depending on the price of Vodafone shares, which they received from the sale of Eircell in May.

    At last year’s annual general meeting, thousands of ordinary shareholders angrily voiced their opinions about the €1m bonuses paid out to two senior executives.

    Meanwhile, a spokesman for Valentia dismissed suggestions that Eircom workers and consumers would suffer due to a poor take-up of the consortium’s €2.4 billion debt mountain. He said there were no problems at all with the loan.

    He said Valentia were not planning additional job cuts at Eircom or on hiking up customer prices, other than what had already been agreed between Eircom and its workers.

    According to analysts, Eircom needs to boost its annual growth significantly to repay its debts. But this could be difficult because of more competition in the Irish market, which has meant falling prices and from a slowing telecoms industry.

    The analyst said Eircom will need to continue to invest in its infrastructure and launch services, such as broadband internet, to grow quickly in a slowing Irish economy.


    If this was already posted.... sorry.
    But this really gets up my nose! :mad:

    MS


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