PRE-TAX PROFITS at one of the State’s best known property firms, Jones Lang LaSalle, dropped by 39 per cent to €2.9 million in 2008, according to accounts recently filed at the Companies Office.

The Dublin-based firm, which specialises in commercial property, sustained the drop in pre-tax profits after revenues fell 28 per cent from €20.4 million to €14.6 million to the end of December 2008.

Accounts recently filed by Jones Lang LaSalle Ltd show that the firm suffered a 51 per cent drop in operating profits from €4.4 million to €2.1 million in 2008.

However, in spite of the drop in profits and turnover, the 12-member board of the company increased directors’ remuneration by 12 per cent to an average €583,083 in 2008.

The board increased the remuneration to the 12 directors to an aggregate €6.9 million in 2008, up from €6.1 million in 2007.

Directors’ remuneration was made up of €6.1 million in emoluments and expenses; pension contributions of €538,000 and share based payments of €307,000.

The directors’ emoluments, including expenses, increased by 24.5 per cent from €4.9 million to €6.1 million in 2008.

The remuneration to directors accounted for 74 per cent of the pay to the 72 people employed by the company, where the aggregate payroll costs were €9.4 million.

The directors’ remuneration also represented 47 per cent of the company’s turnover and was more than twice the company’s pre-tax profit of €2.9 million.

“With the impact of the global economic downturn, this decline is expected to continue well into 2010,” the directors state in the accounts.

This would result “in a need for the company to focus on cost control and client interests to maintain profitability and grow market share”.

The directors state that they do not propose the payment of a dividend.

The accounts also show that the company incurred an actuarial loss of €2.7 million on its pension scheme during the year.

Globally, Jones Lang LaSalle employs more than 30,000 people in 700 cities in 60 countries.