Monday 24 October 2016

Average pay hits €85k at Irish-based consultants

Gordon Deegan

Published 11/10/2016 | 02:30

The increase in average pay came as pre-tax profits soared by 39pc to €33.65m at the firm last year. Stock photo
The increase in average pay came as pre-tax profits soared by 39pc to €33.65m at the firm last year. Stock photo

The average pay at a Dublin- based consultancy firm that carried out a report on pay at Irish banks increased to €85,635 last year.

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New accounts filed by Mercer Ireland Holdings Ltd show that the average pay for the 438 employed at the firm increased from €82,979 to €85,635.

The increase in average pay - which doesn't include pension payments - came as pre-tax profits soared by 39pc to €33.65m at the firm last year.

This followed revenues at the company increasing from €134.62m to €152.27m in the 12 months to the end of December last.

Six directors acted for the firm during the year and directors' pay last year totalled €1.59m. This was made up of €1.48m in pay and €109,496 in pension payments.

In 2014, the Minister for Finance, Michael Noonan, confirmed that Mercer received €146,370 concerning its review on the remuneration practices and frameworks at the financial institutions.

The pay at Mercer is €25,235 more than the average pay of employees at the largest bank, AIB, which was included in the Mercer report. The consultancy firm found average remuneration of €60,400 at the bank.

A breakdown of the numbers employed show that Mercer has 65 in management with 373 administrative and professional staff.

According to the directors' report, the directors were "happy" with the group's performance.

The directors said the 13pc increase in revenues was driven by primarily due to an increase in the European fiduciary business and significant client wins in that market.

The report discloses that during the year, the firm received capital contribution of €5.75m and this was paid to a subsidiary in order to meet regulatory requirements due to the growth in the business.

The report states that during the year, the company received a €12.05m dividend from subsidiaries and this subsequently paid to the firm's ultimate parent.

The principal activity of the group consists of the provision of actuarial, human resource, investment consulting advice and related services.

The group also operates as a fiduciary manager for the entire Mercer group's European business.

Total staff costs last year totalled €55m and this was made up of €37.5m in pay; €9.18m in pension costs; €4.4m in social welfare costs and €4.3m in unspecified other costs.

Pension costs soaring from €1.77m to €9.18m arose from a management decision to cease providing future service benefits to staff.

As part of the review, staff joined the defined contribution plan on August 1, 2015, and were granted one year's additional service in the defined benefit scheme at a cost of €4.9m.

Mercer recorded a €30.4m gain on its pension scheme.

Irish Independent

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