CRH to ask shareholders to approve bumper bonus scheme
Building materials giant CRH will ask its shareholders to approve new double and treble-pay performance bonuses for its chief executive and top management at its AGM this week.
Albert Manifold, who joined the company in January will receive an award of 250 per cent of his €1.2m salary, amounting to €3m this year under the plan. Other executive directors would be granted awards of 200 per cent of their salary in bonus.
Finance director Maeve Carton would stand to make €1.25m on top of her €625,000 salary under the new rewards structure.
New recruits to the CRH board from outside the company would be set to receive an award of up to 350 per cent of their salary, according to the proposal made in the company's pre-AGM circular. Other executives could also receive this more than treble salary bonus “in exceptional circumstances,” the proposal said.
The company said that the proposed bonus scheme, which is binding, is motivated by a desire to reflect best practice and shareholder expectations for FTSE100 companies, and should aim to incentives executives to deliver long term strategic goals. The last major top pay review at the company was in 2009.
The new awards under the 2014 bonus scheme would be made in the form of free shares, free share options and the right to receive a cash amount relating to the value of a certain number of notional shares.
The proposal will be put to shareholders at the company's annual general meeting next Wednesday in Dublin.
CRH didn't respond when contacted about the new plans on Friday.