Monday 22 January 2018

Eircom top brass could net €200m in sale of telco

Eircom chief executive Herb Hribar
Eircom chief executive Herb Hribar
Nick Webb

Nick Webb

EIRCOM boss Herb Hribar and other top executives at the company could scoop up to €200m for turning around and ultimately selling off the telecoms giant.

Company documents show that "the management pooling vehicle for the management incentive plan" now holds around 9.55 per cent of Eircom.

Eircom and its biggest shareholder, Blackstone, rebuffed a €2bn bid from Hutchison Whampoa last year as it prepared to exit examinership.

Last year Eircom introduced a bumper new long-term incentive scheme for its key executives.

This scheme starts to kick in when Hribar and his team increase the value of the company above €1.8bn and up to €2.4bn where, it is capped.

Documents note that "6.4 per cent of the threshold level has been allocated to participants at year end". It has also emerged that Eircom top brass shared €18.5m in remuneration last year.

This was paid to chief executive Hribar; finance head Richard Moat; chairman Padraig McManus – the former ESB boss; board member Nicky Hartery; as well as other directors and members of the senior management team. Last year Eircom bosses shared €15.8m in remuneration.

Eircom did not comment about executive remuneration and the long-term incentive scheme.

Last week, the firm stole a march on its rival telcos by launching its much-hyped 4G mobile service, which knocks the socks off other networks.

Hribar and his team have pushed through a major cost-cutting programme to stabilise Eircom, which went through Ireland's biggest examinership last year.

Last week, Eircom reported heavy falls in revenues and earnings for the full year 2012.

However, while the fixed line telephony market continues to fall, Eircom reported earnings growth for the last two quarters.

Eircom is pinning future growth on the introduction of a "quad play" offer, where consumers buy a bundle of TV, mobile, broadband and landline from the company.

Sunday Independent

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