Saturday 23 September 2017

Former McInerney operations chief received €843,000 payoff

John Mulligan

John Mulligan

Tommy Drumm, the former McInerney Holdings group operations director, received an €843,000 payoff from the firm after he parted company with the homebuilder last summer.

The sizeable payment of compensation for loss of employment was revealed in McInerney's annual report which was published yesterday.

Mr Drumm (54), a former Dublin Gaelic footballer and All-Ireland player, had been with the company for 26 years and was responsible for the group's homes and contracting businesses in the UK and Ireland. He joined the McInerney board in 2004.

His departure came as McInerney struggled to rapidly scale back its expense and operational base when it began to rack up huge losses after the housing collapse in Ireland and the UK.

Including a €179,000 salary in 2009 and pension payments of nearly €237,000, Mr Drumm received almost €1.28m in total from the company last year.

Its chief executive, Barry O'Connor, was paid a basic salary of nearly €447,000 in 2009, while its director of group treasury, Mark Shakespeare, was paid €358,000, as was financial director Enda Cunningham. No bonuses were paid to directors.

McInerney recently reported a loss of €25m before exceptional items for 2009, compounding a €47m loss recorded in 2008.

After exceptional items, the company made a €191m loss in 2009, following a €189m loss in 2008.

McInerney slashed the value of its Irish land bank in half and engaged investment bank Goldman Sachs to examine ways of raising fresh capital and restructuring the business.

Last week, Mr O'Connor signalled to the board that he is interested in acquiring McInerney's Spanish assets, which include the Alanda Club Resort in Marbella.

Irish Independent

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