IL&P denies €4.6m payoff was 'golden parachute'
Published 13/04/2010 | 05:00
Irish Life & Permanent's former boss Denis Casey landed a €4.6m payoff last year, but the group dismissed suggestions last night that it amounted to a 'golden parachute'.
"He received his contractual entitlement -- no more, no less," a spokesperson for IL&P said.
Still, the deal is likely to attract attention at the group's annual general meeting next month, when IL&P becomes the first financial institution in Ireland to put its remuneration report to a shareholder vote.
While the poll will be non-binding, it will give the group a clear indication -- for the first time -- on shareholders' feelings on the issue. Major investors have been lobbying Irish publicly-quoted hard in recent months to put 'say on pay' votes to shareholders.
Mr Casey, an Irish Life 'lifer', announced in February last year that he was stepping down, amid political and public outrage over the group's controversial €7.45bn deposit placed with Anglo Irish Bank the previous September. The lodgement served to flatter the now nationalised bank's financial standing at the time.
IL&P's then finance director, Peter Fitzpatrick, and head of treasury, David Gantly, also fell on their swords over the issue.
The group's annual report, published yesterday, showed that Mr Casey received four-and-a-half months' salary, worth €369,000. He was also given €1.25m in lieu of notice "in accordance with his contractual entitlements", it said.
The former chief executive also saw €2.9m being pumped into his defined benefit pension pot. The report said the figure represented "the transfer value of the increase in accrued pension during the year, including an allowance for the impact of early retirement".
The earliest Mr Casey (50) could draw down a company pension would be in five years' time. The executive's total package marked a 386pc improvement on the €942,000 he received for 2008.
Mr Fitzpatrick's total remuneration came to €719,000 down from €988,000 for the previous year.
The group's new chief executive Kevin Murphy, who took over the helm in August, saw his total remuneration dip to €744,000 from €959,000. His salary for the year came to €515,000, while he received a €196,000 pension benefit.
The pension benefit was in form of a taxable allowance in compensation of loss of pension, resulting from the Finance Act 2006's €5m cap on individuals' pension pots.
Group chairman Gillian Bowler's fee for the year came to €200,000, down from €288,000 for 2008.
IL&P stands alone among the six state-guaranteed banks in not needing to participate in the NAMA scheme or requiring a bailout.