Business Irish

Monday 11 December 2017

Smurfit Kappa executives were paid €10m last year

Tony Smurfit, left, and Gary McGann
Tony Smurfit, left, and Gary McGann
John Mulligan

John Mulligan

Executive director pay at packaging giant Smurfit Kappa totalled €10m last year, as Tony Smurfit took over the helm of the company from Gary McGann.

The company's annual report, published yesterday, shows that Mr Smurfit, who succeeded Mr McGann as chief executive last September, was paid a total of €1.5m in 2015, with an additional total benefit of €1.8m under the group's long-term incentive plan (LTIP).

That total of €3.3m compared to the total €4.9m Mr Smurfit was paid in 2014. Mr Smurfit also announced his retirement, effective yesterday, from the board of drinks maker C&C.

Gary McGann, who retired as chief executive of Smurfit Kappa in August, was paid a total of €3.3m last year.

That included almost €1.7m from his basic salary and bonus, as well as payments under the LTIP that brought the total to €3.8m.

Chief financial officer Ian Curley, who has announced that he'll leave the group this month, was paid a total of €2.8m last year, which included €1.2m in salary and bonus, and the remainder as part of the LTIP.

The amount of pay due to the chief executive was also revised last year. "Following the appointment of Tony Smurfit as group chief executive officer, the (compensation) committee, taking into account advice from its external advisors, set the salary for the new group chief executive at €1.1m," the annual report notes.

"The committee was also mindful that there was no current intention to appoint a replacement group chief operating officer," the report added.

The chief operating officer role was held by Mr Smurfit prior to his appointment as chief executive. During the fourth quarter of 2015, Smurfit Kappa reported €326m of earnings before interest, tax, depreciation and amortisation (EBITDA), which was 11pc higher year-on-year. Its revenue in the quarter dipped 1pc to €2.08bn.

For the full year, EBITDA was flat at €8.1bn, with EBITDA rising 2pc to €1.18bn.

Smurfit Kappa operates in 34 countries in Europe and the Americas and employs 45,000 people.

It is the one of the world's largest integrated manufacturers of paper-based packaging products, and recently entered the Brazilian market.

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