Paddy Power team may scoop €20m bonuses
Fresh from trying to bag Tiger Woods in an audacious sponsorship wheeze, Paddy Power boss Patrick Kennedy and key members of his executive team could bag a near €20m bonus beginning in less than two years' time.
This bonus would be on top of the €6.86m in bonus shares handed out to Mr Kennedy and his executive team last week, as awards made under the company's bonus scheme three years ago kicked in.
Mr Kennedy and his fellow executives were also awarded €6.5m worth of shares under the scheme, but this will not vest for almost two years. Regulatory filings show that the top executives have nearly 820,000 shares under the incentive scheme -- based on current prices this is worth almost €20m. however, awards made in 2008 are unlikely to vest.
A spokesman for the €1.2bn-valued bookmaking company indicated that the executives had to grow profits by 15 per cent per year for these bonuses to vest.
Patrick Kennedy was voted top Irish chief executive by analysts last year, with Paddy Power voted the best company, as it grew its business rapidly and completed major acquisitions in Australia.
Paddy Power executives and board members cashed in nearly €9.7m worth of shares last week. Mr Kennedy and his management team own over €17m worth of shares in the fast-growing bookie, which last week reported sales growth of 15 per cent, although profits dropped.