The Irish Times Ltd has disclosed details of the remuneration paid to its senior executives.
A letter sent yesterday to Mr Jack Nash, the national industrial secretary of SIPTU, from the chairman of the company, Mr Brian Patterson, provided details of the executive directors' salaries at the end of 2002, and a breakdown of the €3.284 million paid to 13 board members during 2002. It follows a request from unions representing the company's staff in the wake of the publication of the total remuneration figure in the group's 2002 accounts last month.
At the end of 2002 the two highest-paid executive directors were the managing director, Ms Maeve Donovan, and the editor, Ms Geraldine Kennedy, who were both paid a basic salary of €296,000. Details of their performance-related pay, benefits-in-kind, and pension costs were not included in the letter.
The base salaries of four other executive directors were also disclosed. Mr Michael Austen, the deputy managing director, was on a base salary of €222,000. The base salary of the finance director, Mr Liam Kavanagh, was €178,000 while Mr Pat O'Hara, who was executive editor until September of this year, was on a base salary of €125,000. Mr O'Hara was succeeded by Mr Paul O'Neill this year. Mr Eoin McVey, a managing editor, was on a base salary of €112,000. Details of the other elements of these executive directors' remuneration was not disclosed.
Two other directors, the chairman, Mr Patterson, and the chairman of the Irish Times Trust, Prof David McConnell, are also in receipt of executive remuneration. The amounts were not disclosed. The Irish Times Trust Limited is the sole shareholder in the Irish Times Ltd.
Mr Patterson's letter provided a breakdown of the €3.284 million in executive remuneration paid in 2002, which was shared by 13 individuals. They included Ms Donovan, Ms Kennedy, Mr Austen, Mr Kavanagh, Mr O'Hara, Mr McVey, Mr Patterson and Prof McConnell, together with five directors who left during they year.
They were: Mr Conor Brady, the former editor, Mr Don Reid, the former chairman of the Irish Times Ltd, Ms Karen Erwin, the former group general counsel, Mr Séamus McCague, who was technology and resources director, and Mr Derek McCullagh, the production director. The last three individuals were not replaced, reducing the number of executive positions on the board from eleven to eight "continuing positions".
The remuneration figure of €3.284 million comprised salary payments of €1.893 million, bonus payments (performance-related pay) of €621,000, benefit-in-kind payments of €118,000 and pension contributions of €652,000. The figures are not broken down by individual. An analysis is provided by "continuing" and "discontinued" positions.
A total of €2.519 million was paid in respect of the eight "continuing" executive positions. This broke down as base salaries of €1.404 million, performance-related pay of €575,000, benefits-in-kind of €85,000 and pension costs of €455,000.
The distribution of bonus payments was not disclosed. Mr Patterson states that performance-related pay is "set and approved by the Remuneration & Nominations committee on the basis of the achievement of individual, specific targets and objectives". He added that the 2002 awards were not paid until the company returned to profitability in the first quarter of 2003.
The objective set for the management team in 2002 was to reduce losses from €21.7 million (including restructuring costs) the previous year to under €6 million. "This objective was exceeded, and as you know from the accounts, the loss reduced to €2.8 million," Mr Paterson said.
In 2003 the management were charged by the board with moving the company into profit, with an objective of €1.5 million. "We know at this point that this will be exceeded and the 2003 accounts will show that further recovery."
He also states: "The Irish Times Ltd is going considerably further than the private company norm in releasing the range of detailed information about its annual accounts today. This policy recognises our special position as a private company with a public interest ethos."
He referred to the arrangement with the former editor, Mr Brady, who will be paid, subject to certain conditions, €100,000 a year, index-linked to 2014. "This was a legally binding agreement entered into by the previous board and therefore we would not comment on it."
He said he had indicated to the group of unions that the company was willing on its part to waive the confidentiality clause in the agreement.
Mr Séamus Dooley, Irish secretary of the National Union of Journalists, welcomed the "comprehensive nature of the disclosure" and said the union would be examining the statement before giving a considered response.
