Quinn chief to leave with six-figure redundancy sum
Published 20/05/2010 | 05:00
DEPARTING Quinn Insurance chief executive Colin Morgan is likely to walk away with a six-figure redundancy package after leaving the embattled company.
Mr Morgan's departure was announced in a brief statement last night, and comes almost two months after the Cavan insurer was placed into administration.
"This has been a very difficult decision to make, but given the changes that have occurred in recent months, I feel it is an opportune time for me to pursue other opportunities in my career," Mr Morgan said.
The one-time investment banker had spent seven years at the insurance company, joining its board in 2004 before becoming general manager and later chief executive.
A spokesman for Quinn declined to comment on Mr Morgan's payoff, but it is understood that the departing executive has taken the redundancy package on offer from the administrators.
In addition to statutory redundancy, the package gives workers four weeks' pay per year of service, making Mr Morgan eligible for 28 weeks' pay.
The redundancy calculations are based on an employee's average earnings, including bonus, in the 12 months to March 2010.
The latest accounts for Quinn Insurance showed Mr Morgan and his two fellow directors shared payments of almost €1.5m in 2008, suggesting an average payment of €500,000 apiece for that year.
Even if his remuneration halved the following year, he would still be in line for a redundancy package of €135,000, plus statutory redundancy.
Mr Morgan's future plans are unclear. The house in Kells, Co Meath, he lists as his address in company documents is up for sale on property website Daft.ie with an asking price of €395,000.
The insurance company's administrators last night paid tribute to Mr Morgan's service, while Quinn staff representative Derek Smith said workers were "disappointed" at the news and had asked for Mr Morgan to stay on at the company.
News of Mr Morgan's departure came on the eve of a report from Quinn's joint administrators to the High Court.
A spokesman for the administrators said the report would update the court on the administrators' progress, but declined to give further detail.
The administrators have succeeded in re-opening Quinn's British motor business, but are still awaiting a decision from the Financial Regulator on the UK commercial business.
A spokeswoman for the regulator stressed that a decision on the commercial business would "take some time" given the "considerable amount of actuarial analysis and other considerations involved".
The administrators have also begun moves to make 900 Quinn workers redundant.
The deadline for the first wave of 350 redundancies has been extended until next Wednesday, at the request of Quinn staff.
Interest in the package is understood to be at the "higher end of expectations".