Sunday 4 December 2016

Glanbia's Talbot to share in €4.5m executive bonus pot

Paul O'Donoghue

Published 24/05/2015 | 02:30

Four of the top executives at Irish food giant Glanbia have been conditionally awarded shares worth a potential €4.5m based on Friday's share price
Four of the top executives at Irish food giant Glanbia have been conditionally awarded shares worth a potential €4.5m based on Friday's share price

Four of the top executives at Irish food giant Glanbia have been conditionally awarded shares worth a potential €4.5m based on Friday's share price.

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Chief executive Siobhan Talbot made up the bulk of that amount, being awarded 109,450 options worth €1.97m.

Brian Phelan, chief executive of the group's global ingredients arm, got 45,500 options worth almost €820,000 while group finance director Mark Carvey and the head of Glanbia's global performance nutrition business, Hugh McGuire, were awarded 46,700 options each worth about €840,000.

The awards were granted under the company's 2008 long term incentive plan, according to a statement issued to the Irish Stock Exchange.

Glanbia's latest annual report says that the incentive levels of the shares will be determined with reference to a combination of total shareholder return, earnings per share and an "appropriate business unit measure". Each of these factors represent one third of the maximum vesting level, unless otherwise determined by the company's remuneration committee

Shares vest for a period of three years after being awarded. Once the shares are granted, they must then be held for an additional period of two years before being sold.

The holding period was recently extended from one year to the current period of two years at the firm's annual general meeting.

A spokesman for Glanbia says that this move was taken "after a benchmark review of international best practice".

"It also ensures that the position of management and shareholders align more closely," he said.

Company boss Siobhan Talbot saw her pay increase by €600,000 last year, after being promoted to the top job at the dairy giant.

Ms Talbot, one of only two women to head up an Irish publicly listed company, saw her pay package increase from €1.03m to over €1.63m, including salary, pension contributions and incentives after her promotion from finance director to group managing director. The top four senior executives at Glanbia saw pay go up 8pc last year, according to the group's annual report.

The company's management team are not the only ones who have recently benefited from their stake in the firm, as members of the Glanbia Co-operative Society voted overwhelmingly earlier this month to dispose of a portion of its stake in Glanbia plc

More than 15,500 farmers are in line for a massive pay-out averaging more than €15,000 after voting in favour of a €170m conversion of valuable shares in the company.

The move will distribute around €238m between members of the Glanbia Co-operative Society through the spin-out of ten million Plc shares and a €68m members' support fund as the dairy sector faces into a time of great expansion with the abolition of milk quotas. It will see the Society's controlling interest in the Plc drop from 41.4pc to 36.5pc.

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