Kane defends bonus payments

Eircom's chief executive, Mr Alfie Kane, yesterday defended the company's performance and his remuneration when he responded …

Eircom's chief executive, Mr Alfie Kane, yesterday defended the company's performance and his remuneration when he responded from calls to shareholders to make a statement.

Mr Kane said that at no time since he had been with the company had he been unprepared to deal with questions and issues. A general principle had emerged that remuneration should be linked to performance and he happened to believe that very strongly.

"I want to emphasise that if anyone believes that what has been done in this company in the last four or five years is not an incredible achievement, then that's an opinion they're entitled to express. I believe firmly that the evidence is overwhelming that there's been massive improvement in this company," Mr Kane said.

If they looked even in the context of finance, turnover had doubled, profit had increased significantly and debt was now zero.

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". . . I will stand and defend both personally that performance and will rigorously defend the remuneration, not only of myself but also of the other directors in this company and other senior executives," he said.

He believed they had to put that in the context of the timing and alignment of those payments.

They now had a position where their share price was below their ideal price.

"If for one moment the bonuses that I received - or indeed the other executives of this company - were in relation to the performance of the share price since it was floated, I personally would tell you, I wouldn't believe it was justified, not at all. And if I were you I would be equally angry," he told the meeting.

The point they were missing and that needed to be emphasised was the bonus and remuneration were aligned to the significant success in the company.

The Government had felt able to bring a company to the public market, and received £4.5 billion as shareholders. Shareholders might ask what natural expectations were.

"What I can do is say to you that I do believe that we have a valid and good business strategy," he said.