Baltimore Technologies' recently appointed new chief executive, Mr Bijan Khezri, is going ahead with his plan to reduce radically the remuneration paid to the ailing software group's board of directors.
Mr Khezri is taking a flat £150,000 sterling (€240,000) salary in the current year and has waived his entitlement to a bonus.
Mr Khezri's £150,000 package compares with the £454,000 salary, bonus and pensions package that the former chief executive Mr Fran Rooney received last year.
Chairman Mr Peter Morgan has agreed to reduce his salary from £90,000 to £40,000 while Baltimore's non-executive directors have had their pay cut from £25,000 to £18,000.
In addition, only one-third of the various salary packages is being paid in cash with the balance paid in arrears in Baltimore shares which will be issued at the prevailing market price. Contrary to a previous proposal from Mr Khezri, non-executive directors are not to receive share options.
This proposal had been vigorously opposed by the Association of British Insurers, the representative body in the UK for institutional investors.
Mr Khezri said: "These proposals will not only save cash for the company, but more importantly I believe the board should now show leadership and sensitivity to both our shareholders and employees at this crucial time."
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