FBD paid former CEO €179,000 for consultancy work in 2016

Irish insurer FBD paid its former chief executive Andrew Langford €179,000 last year for consultancy services provided to the company between the beginning of February and the end of December.

Mr Langford left FBD in mid-2015 in the wake of a disappointing business performance and two profit warnings in the previous year.

FBD’s annual report for 2016, published on Tuesday, states that he undertook a strategic review of “certain markets” for the company.

Mr Langford received €16,300 a month for his work, which was termed in the report as “commercially sensitive”. He also received 3,329 shares from the company as part of a legacy share awards scheme – relating to the period 2013 to 2015 – that vested.

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Remuneration package

FBD's annual report also reveals that chief executive Fiona Muldoon received a maximum bonus of €315,000 last year as part of an overall remuneration package of €898,000.

This included a salary of €450,000, other benefits of €43,000 and a pension payment of €90,000. In addition, Ms Muldoon received €70,875 as a non-executive director of Bank of Ireland.

Ms Muldoon is entitled to receive up to 70 per cent of her salary in an annual bonus, subject to certain performance conditions being met.

She received total remuneration with FBD of €449,000 in 2015, having joined the company as a director in January of that year before becoming interim chief executive in July following Mr Langford’s departure.

She took on the CEO role on a permanent basis in October 2015 and led the company back to profitability last year while also restructuring the management team, streamlining the business, and refreshing the brand to appeal to urban as well as rural customers.

Incentive plan

Separately, Ms Muldoon was granted 54,961 shares during last year as part of a long-term incentive plan. This brought the number of shares granted to her to 109,506. All of the shares are slated to vest in March 2019.

FBD’s chief financial officer John O’Grady received €184,000 last year, including a bonus of €50,000. He joined the company in mid-2016.

The company's directors were paid €1.62 million in aggregate, down from €1.77 million in 2015. Its chairman, Michael Berkery, received €127,000 for his services.

Mr Berkery is due to step down as chairman and, in his statement in the annual report, said the board was “well advanced” in choosing his successor. The company hopes to make an announcement around the time of its annual general meeting.