Cantillon: Chunky pay for the bosses is back in fashion

As technology-to-energy conglomerate DCC grows, so does its chief executive's pay packet.

Tommy Breen, the softly-spoken Ulster man who took the reins at DCC in 2008, may argue that, like L'Oréal, he's probably worth it.

DCC released its annual report yesterday, which revealed that executive pay levels at the company increased in the year to March by a rather chunky 21 per cent.

Breen’s total pay packet, including his salary, bonus and other incentives, increased from €3.16 million to €3.85 million. This puts him firmly at the top table of Irish-listed company bosses in terms of executive pay levels.

Donal Murphy, who runs DCC's hulking energy division, saw his pay jump from €1.5 million to more than €1.8 million, while chief financial officer Fergal O'Dwyer went from €1.7 million to past the €2 million mark.

DCC has been on a significant roll over the last couple of years.

Last month, it announced a 10 per cent increase in operating profits and dividends as well as securing the biggest acquisition in its history: the €464 million buyout of French LPG supplier Butagaz.

The company’s total return for shareholders over the last five years has been 177 per cent, and it has now established itself as the third-biggest LPG supplier in Europe.

The company also has a warchest of up to €1 billion for further acquisitions. DCC will get bigger and so, presumably, will Breen’s pay.

Glanbia’s three-man-and-one-woman executive management team also saw their pay rise last year, although by a more sedate 8 per cent. Siobhán Talbot and her three amigos cost a grand total of just €4.22 million, however, compared with the €7.7 million of DCC’s trio.

Smurfit Kappa, the paper giant that has also been on a roll, actually cut its executive pay by 3 per cent last year, despite having a stellar performance and strong growth.

But almost across the board, salaries are rising in Irish boardrooms as plcs take advantage of settled market conditions to grow and prosper.

The question is: when will their workers’ pay packets do the same?