TROUBLED DUBLIN-based software company Iona Technologies, which is the subject of several takeover approaches, has agreed a new service contract with its chief executive Peter Zotto which boosts his pay package.
This has emerged in Iona's annual report, which has just been filed with the Securities and Exchange Commission in the United States.
Under the new deal, which was signed on April 1st, Mr Zotto's salary for this year was increased by almost 8 per cent to $400,000 (€258,000). He is also entitled to a bonus of $300,000 if the company meets certain financial targets. In addition, Mr Zotto is entitled to 18 months' salary and 150 per cent of his bonus target if his employment is terminated by Iona without "cause".
Iona, which was spun out of Trinity College, is the subject of a number of takeover approaches. These are believed to include US-based Sun Microsystems, Germany's SAP and Software AG.
The annual report shows that Mr Zotto earned a salary of $368,755 in 2007 but received no bonus payment.
In 2006 Mr Zotto's total pay was $846,500, including a bonus of $500,000.
No bonuses were paid to Iona directors last year, a period when it recorded an operating loss of $2.9 million.
Iona's nine serving directors in 2007 received an aggregate $989,712 in salaries and fees, down 34.7 per cent on the $1.5 million its 10 board members earned in the previous year.
Iona founder Chris Horn was paid a director's fee of $90,000, the same level as 2006.
Share-based payments made to directors last year amounted to $418,000, compared with $615,000 in 2006.
According to the Irish company's annual report, Iona has accumulated losses of $124 million for Irish income tax purposes that it can "carry forward indefinitely".
The report also states that the company expects to incur costs of $1.5-1.7 million in the first half of 2008 from a "cost reduction plan" announced on January 11th.
"The group is currently exploring its options to mitigate its affected real estate lease obligations," it added.
Iona said the rent payable on its 5,193sq m (55,900sq ft) headquarters in Dublin's Ballsbridge district is due for an "upward revision" in August this year "according to prevailing market conditions".
The lease is due to run until 2023, however it can be broken in 2013.
