Friday 28 April 2017

Eircom chiefs in line for a €27m debt deal mega bonus

Roisin Burke

EIRCOM CEO Paul Donovan and other top executives would share up to €8m if Singapore Technologies Telemedia's debt restructure proposal is accepted by lenders, a source said.

It emerged last week that 10 per cent of the company's equity would go to senior staff under the offer.

"Management will get the lion's share of this €26.6m and the CEO's office and a couple of guys on the senior management team could end up getting two or three per cent of that," a source said.

"If the €200m [to be injected by STT] is supposed to buy them 75 per cent, well then 100 per cent is worth say €266m. So if you were to give the top management two or three per cent of that then you're talking between €5m and €8m."

Eircom is led by CEO Paul Donovan. Greencore chairman Ned Sullivan is chairman and former CWU leader Jerome Barrett is deputy chair.

The remainder of the 10 per cent would to go to middle management down.

"They [STT] give a share at the entry level and if that equity value was found to be €150m in five years' time well you're down on money. And if it's worth €500m in five years' time you're getting your share out of that. But it's worth something if they're getting it for free, as appears to be the case."

STT's proposal is one of three being considered by the independent directors.

Sunday Indo Business

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