Public relations firm Murray Consultants paid out €2.46 million in management fees last year to its co-founders Joe Murray and Jim Milton, according to newly-filed accounts.

The lion's share of the charge was paid in respect of pension contributions to the two men, who have begun to transfer their interest in the business they established in 1974. The remainder of the charge was paid in light of a "realignment of overheads" in a succession plan that facilitates the transfer of shares from Mr Murray and Mr Milton, who rank among the best-known PR advisers in Dublin.

Payment of the new recurring management charge to the two men had an impact on the bottom line at the company. Abridged accounts show that retained profits in the business declined to €1.05 million at the end of 2005 from €1.75 million a year earlier.

However, managing director Pat Walsh said "unadjusted profits" of €1.15 million last year would have brought retained profits to €2.9 million if the charge had not been made. Following an initial transfer of shares last year, Mr Walsh and co-director Pauline McAlester now own about 20 per cent of the company.

The succession plan allows them and other executive directors in the company to increase their stake to 49 per cent by the end of 2008.

Mr Milton and Mr Murray remain highly active on the client side of a company whose clients include Independent News & Media, Ryanair, Heineken, Cadbury and IAWS. The biggest of the independently-owned firms in the sector, Murray Consultants held inconclusive takeover talks with London firm Incepta in 2002.

When asked whether the company might ultimately be sold, Mr Walsh said there were no such plans. "The company is doing very well. We don't see any reason to change the status quo."