The founders of Cairn Homes received a share allocation of some €61.4 million during 2017, as the developer reported a sharp rise in revenues and earnings and continued to benefit from the crunch in housing supply in Ireland.
According to the company's annual report for 2017, published on Monday, chief executive Michael Stanley received total remuneration of €797,000 for the year, down by 14 per cent on 2016, due to a lower bonus.
Mr Stanley’s package for 2017 comprised a salary of €425,000, a bonus of €319,000, pension payment of €43,000 and a car allowance of €10,000. Mr Stanley’s pension will increase to 25 per cent of salary, or to some €106,000, this year, while his salary will remain unchanged.
Alan McIntosh, a founder and executive director of the developer, received total compensation of €525,000 for 2017, down 13 per cent on 2016.
Mr Stanley received a bonus of 75 per cent of his salary, while Mr McIntosh received 50 per cent of his, based on reaching the “target incentive”. Full bonus, of 105 per cent of salary for Mr Stanley, was based on reaching the “maximum” incentive. The relevant performance targets were not disclosed.
Tim Kenny, who took up the role of chief financial officer on August 22nd last year, was paid €242,000 during 2017. He will receive a salary of €380,000 for this year, according to the report.
The report shows that his predecessor, Eamonn O’Kennedy, who departed last summer, was paid until November 2017, including six months of notice as per his contract, and received total remuneration of €643,000.
Incentive plan
Cairn also operates a long-term incentive plan, and during the year Mr Kenny, the only executive eligible for the scheme, was awarded 431,818 shares.
Mr Stanley, Mr McIntosh and chief operating officer Kevin Stanley are entitled to share awards through the company's founder share scheme. On August 18th, 2017, some 38.7 million such shares were converted to ordinary stock, through this scheme.
Mr McIntosh’s 19.3 million shares were converted at a price of €1.58 apiece, or €30.7 million in total. Michael Stanley’s 13.5 million shares are worth €21.49 million, while Kevin Stanley’s shares are worth €9.21 million.
Cairn is targeting total revenue of in excess of €350 million in 2018, up from about €150 million in 2017, including more than 800 sales completions. It is targeting annual revenue of about €500 million from 1,300 to 1,400 sales completions annually from 2020.
On Saturday, Cairn said it sold 48 homes on the first day of sales at Glenheron, a development in Greystones, Co Wicklow. Buyers paid €435,000 for three-bedroom semidetached houses, between €495,000 and €510,00 for four-bedroom homes, and from €550,000 to €700,000 for detached dwellings.
Cairn is listed on both the London and Dublin stock markets. It has raised more than €720 million in equity since its stock market debut in 2015, including €440 million at the time of its initial public offering.
