C&C proposes new bonus scheme for management
Bulmers maker C&C is asking investors to approve a new bonus and long-term incentive scheme for CEO Stephen Glancey and his management team as the €1.2bn-valued company has suffered a 20pc share price fall over the last year.
The new scheme could see management earn bonuses of up to 500pc of salary in "exceptional circumstances".
C&C's latest annual report shows that Glancey's core pay fell 14pc to €980,000 last year, which could potentially see him able to receive a bonus issue of shares worth up to €5m in exceptional circumstances. However, the actual awards are likely to be considerably smaller, with an increased amount of deferred shares.
"There has been considerable effort by the remuneration committee in preparing these proposals to balance company needs with the justifiable observations of our shareholders," the company noted.
C&C's remuneration committee is chaired by Penney's executive Breege O'Donoghue.
"Financial incentives have been used prudently in the past to reward effort. Indeed, when we look at our historic bonus levels, one might observe that - relative to our peers - pay-outs have been modest," it added.
C&C, which has been widely tipped as a takeover target for a larger drinks company, is also proposing that executives can receive some of their bonuses if the company is bought out.
"In the event of a change of control of the company, the remuneration committee will determine the extent to which awards and options will vest, taking into account the extent to which any performance condition has been satisfied."
Sunday Indo Business