SHAREHOLDERS OF Dublin-based investment group One51 yesterday heavily criticised the company’s board of directors for paying excessive remuneration to former executives and for the collapse in the value of its shares.
An attempt by Wexford farmer Peter Byrne to gain election to the board, against the wishes of the company, was defeated.
Mr Byrne secured 36.4 per cent support from the votes cast at the end of yesterday’s meeting.
At a tense agm in Dublin’s Conrad Hotel, which lasted for just under three hours, shareholder and accountant David Coyle lit up the proceedings.
In a hard-hitting speech delivered from the top stage, Mr Coyle criticised One51’s corporate governance standards and made specific reference to the directors’ remuneration report in its 2010 annual report.
“In my opinion, the report is incomplete, inaccurate, is misleading and obscures the truth behind the incomprehensible and groundless system of awards provided to executives over the past two years,” Mr Coyle said.
He claimed that Philip Lynch, who was sacked as chief executive in July, had received €6 million in remuneration between 2009 and 2011 - “a period during which the company lost €346 million”.
Mr Coyle called for “new and relevant blood” to be added to the board. “It needs it now,” he said.
One51’s chairman Denis Buckley and former remuneration committee chairman Hugo Maguire defended the remuneration paid to executives and said this issue had been addressed.
“In hindsight, the levels of remuneration were excessive for certain individuals,” Mr Buckley said.
Earlier, Mr Buckley said the appointment of a new CEO was “being progressed”.
After the meeting, interim chief executive and chief financial officer Alan Walsh said he wanted the top role on a permanent basis.
Mr Walsh said this would involve improving business performance and reducing debt levels, which stood at €156.6 million at the end of June.
He added that it would mean selling “certain specific assets within a realistic timeframe”.
Mr Walsh said its 12.3 per cent stake in Irish Continental Group would be retained. “We have no intention of selling the ICG holding at this point in time. I see a lot of upside in the share price.”
One51 would not sell its 23.9 per cent stake in NTR as it was seriously under water on this investment, he said.
Mr Walsh said the focus would be on its environmental services division, which has been branded as Clearcircle.
One51 updated shareholders on its latest trading. Turnover rose by 15 per cent to €218.7 million in the first six months of this year while its Ebitda (earnings before interest, tax, depreciation and amortisation) was down 7 per cent at €24.3 million.
Its operating profit for the full year would fall when compared with 2010. due to the loss of a dividend from NTR, “higher financing costs, non-recurring items and other one-off items”.
It emerged yesterday that the Revenue Commissioners are investigating One51’s controversial Chandela patent scheme, which resulted in significant payments being made to former executives.
Mr Walsh conceded that any liability that might arise from the investigation by the Revenue would have to be met by the company.