Irish-listed companies failing to disclose fees for directors
A number of listed Irish companies are not reporting fees paid to directors, pension payments made to certain key managers and 'golden handshake' arrangements made with top staff, a review has found.
A review of financial statements in 2010, by the Irish Auditing and Accounting Supervisory Authority (IAASA), found that certain unnamed companies were not disclosing compensation arrangements despite recent controversies at the banks.
"It is not acceptable that certain issuers continue to fail in this regard, particularly given the sensitivity of the required disclosures,'' said the organisation that monitors the quality of financial reports issued by Irish listed companies.
The IAASA said it had "observed a number of instances of non-compliance with these requirements, including the failure to include details of compensation paid to all directors''.
The names of the companies involved were not disclosed.
Gaps in what companies report to shareholders were believed to still be relatively common despite the advent of shareholder activism in recent years.
IAASA chief executive Ian Drennan told the Irish Independent: "Our approach towards these issues is typically to seek directors' undertakings to enhance their reporting in this area in future reports in users' interests."
It is understood that the items not disclosed were:
- Omission of fees paid to non executive directors.
- Omission of pension contributions made to members of key management personnel (including directors and other key members of management).
- Termination benefits paid to members of key management.