Xilinx boss got $350,000 pay-off as 120 jobs were cut
THE former managing director of Xilinx Ireland got a $350,000 (€245,000) golden handshake months before the technology giant axed 120 local jobs to cut costs last summer.
The payment to Paul McCambridge is detailed in fresh Companies' Office filings for Xilinx Ireland, which still employs more than 200 people.
Launched in 1995, the Irish operation is Xilinx's headquarters for the European, Middle East and Africa (EMEA) region and accounts for about a third of group revenue.
The filings show that the operation paid $100m in dividends to its US parent last year, bringing total repatriation since 1999 to almost $1.5bn.
Xilinx's operations here have traditionally been very profitable, with Xilinx Ireland notching up a turnover of $583m and pretax profits of $212m for the year ended March 2008, but the company still shed a quarter of its staff last year, blaming the deteriorating global economic environment.
The latest accounts show pretax earnings of just $130m on a reduced turnover of $515m in the year ended March 2009.
In notes to the accounts, however, the directors say that the 11.6pc fall in revenue was "largely due to the recessionary environment", while the fall in gross margins -- which was a major factor in the depressed profits -- stemmed from "the impact of increased royalties payable to its parent company".
The accounts also show a $347,896 "compensation for loss of office" payment, understood to relate to former Mr McCambridge -- who resigned from Xilinx Ireland's board in January 2009 and now runs the newly-launched Irish operations of US technology firm Maxim.
A spokesman for Xilinx Ireland declined to comment on the circumstances surrounding Mr McCambridge's departure or the loss-of-office payment.
The "reorganisation" saw the firm cut 130 jobs and marked the end of Xilinx Ireland's "R&D cost-sharing arrangement" with overseas affiliates -- triggering a 41pc or $38.6m fall in the company's 2009 R&D spends.
But the company's spokesman stressed that the lower R&D spend related to the cost of work done on the Irish company's behalf in the US. "The existing R&D operations in the company in Ireland continue as heretofore," he added. "R&D continues and remains a very important part of operations in Ireland."