Irish Life & Permanent paid €650,821 to the former chief executive of its Permanent TSB subsidiary, Mr Harry Lorton, as compensation for loss of office.

Mr Lorton joined the company in April 2001 following the €430 million acquisition of TSB Bank but resigned as a director in August 2002, a little over a year later.

He announced his decision to leave the group last July, saying it was an opportune time to end that phase of his career and that he planned to take time to explore a number of personal interests.

His severance package is understood to have been part of a contractual arrangement entered into at the time TSB was acquired.

The company's annual report, released yesterday, also confirmed that it paid former Irish Permanent chief executive Mr Billy Kane €357,812 as compensation for loss of office when he left the group in 2001.

Meanwhile, Irish Life & Permanent chief executive Mr David Went was paid €822,000 in total last year, just €5,000 more than in 2001.

His package was made up of a basic salary of €563,000 and an annual bonus of €223,000, which was down on the 2001 level of €293,000. He also received benefit-in-kind of €18,000 and other remuneration of €18,000.

Finance director Mr Peter Fitzpatrick received €540,000, a 9.5 per cent increase on 2001, while the head of the company's retail division, Mr Denis Casey, was paid a total of €477,000, up 12 per cent from €425,000 a year earlier.

The company's chairman, Mr Roy Douglas, was paid €169,000, up from €159,000 in 2001.

Irish Life & Permanent also said yesterday that a number of executive directors, including Mr Went and Mr Casey, have been granted shares under the company's profit-sharing scheme.

Along with the chief executive of Permanent TSB Mr Brian McConnell, company secretary Mr Sean Ryan and the head of its investment arm Mr Kevin Murphy each received between 1,341 and 1,342 shares worth €9.46211 each, valuing them at almost €12,700.