Business Irish

Monday 19 February 2018

New CRH boss in line for bumper €3m-plus payday

Albert Manifold, pictured centre.
Albert Manifold, pictured centre.
John Mulligan

John Mulligan

New CRH boss Albert Manifold could be eligible for a bumper €3m-plus payout this year as his salary and incentives rise in line with his new post. But he'd have to deliver a superstar performance to scoop the maximum bonuses on offer.

The former chief operating officer at Ireland's biggest company, Mr Manifold took up the CEO mantle this month, succeeding Myles Lee.

The latest figures for Mr Manifold show that he made a total of €1.5m in 2012, while Mr Lee made €2.7m. Those figures included the value of vested share awards, which were €125,000 and €184,000 respectively. Mr Lee's figure also included a €980,000 retirement benefit. Mr Manifold got €288,000.

Under CRH's remuneration structure, the top brass have been eligible to receive a performance-related incentives amounting to as much as 120 per cent of basic salary.

If Mr Manifold is this year paid a basic salary and benefits in line with what Mr Lee has been receiving, €1.1m, then that means the new chief's maximum possible payout under that incentive scheme could top €3.1m.

But CRH has targeted payouts to executives under the scheme of 80 per cent of their basic salary. That's payable in cash, while anything above that and up to the 120 per cent is paid in shares, which are deferred for three years.

In 2012, Mr Manifold was paid €266,000 under the incentive plan, representing 33.3 per cent of his basic €798,000 salary. He also got benefits totalling €33,000. Mr Lee was paid €383,000 under the plan in 2012, also representing a third of his salary.

As head of CRH, Mr Lee also benefitted from a long-term incentive plan (LTIP).

Under it, Mr Lee was entitled to receive a payment representing the equivalent of up to 40 per cent of his aggregate basic salary.

"The purpose of the LTIP is to incentivise superior performance by the group over the long term and the successful execution of group strategy," notes CRH.

Awards made under the scheme to the CEO are payable in cash, but the money accrued over the five-year CEO LTIP plan doesn't have to be paid until that five-year period is complete.

CRH said last year that it was undertaking a review of its remuneration policy in order to ensure it reflected the current best practice amongst FTSE-100 member firms. CRH has its primary stock market listing in London.

A shareholder consultation process was undertaken in the last quarter of 2013 and shareholders will be asked to approve new proposals at the company's AGM in May.

Mr Manifold owns slightly fewer than 39,000 shares in CRH, compared to the 433,447 owned by Mr Lee. Mr Manifold also has 443,080 shares held under various share options schemes at CRH and a maximum of 204,000 CRH shares that may vest under conditional share awards.

Irish Independent

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