FBD to introduce bonus clawbacks for top executives
Insurer FBD wants to be able to claw back lucrative bonuses from top executives.
The insurance company, whose share price has plummeted in the wake of profit warnings and questions over its reserves, is looking at bringing clawback provisions into employment contracts for top executives.
However, new interim chief executive officer Fiona Muldoon, the former head of banking and insurance supervision at the Central Bank, was hired without a clawback provision, it is thought. She is widely tipped to be appointed permanently to the chief executive job, however, which would mean a new contract.
Her predecessor, Andrew Langford, whose resignation earlier this summer rocked the insurer, was also not subjected to a bonus clawback.
Langford took home €400,000 in bonus awards between 2011 and his resignation earlier this year. He was eligible for a bonus of €28,000 last year, but he and the FBD remuneration committee agreed that no bonus be paid in 2014 in light of the overall performance of the group, according to its annual report.
Langford also received a stock award worth €619,642 last year as part of the company's long-term incentive plan. This award of 35,267 shares in the company came when the stock was priced at €17.57. The share award was based on FBD's performance between 2011 and 2013. Langford sold about half of the award to clear tax liabilities.
FBD's share price has taken a major hit in recent months as the insurer issued a number of profit warnings on the back of increased customer payouts, which it said related to the economic recovery.
Its share price fell further last week following reports that the company needs a capital injection of up to €100m to ensure it meets tough new solvency rules due to take effect from the start of next year.
Sunday Indo Business