Former IFG Group CEO McNamara gets over €300,000 on departure

Ex-head of finance group who stepped down unexpectedly, received termination pay-off

Paul McNamara, who  earned £614,000 in remuneration from the firm in 2015, was awarded a total of £565,100 last year

Paul McNamara, who earned £614,000 in remuneration from the firm in 2015, was awarded a total of £565,100 last year

 

Paul McNamara, who stepped down unexpectedly as chief executive of Dublin-listed IFG Group in September, received a termination payment totalling £280,100 (€327,685) last year, the company’s annual report shows.

Mr McNamara, who earned £614,000 in remuneration from the firm in 2015, was awarded a total of £565,100 last year. This consisted of the termination payment, as well as a basic salary of £232,000 and benefits totalling £53,000. The termination payment included a £75,000 deferred bonus from 2015.

Mr McNamara’s replacement John Cotter, formerly group finance director, received remuneration of £397,000 in 2016, as against £310,000 a year earlier. This included a basic salary of £253,000 and a deferred £45,000 bonus.

Overall, Mr McNamara and Mr Cotter received salary and related fee payments of £595,000, down from £1.01 million in 2015.

Mr Cotter, who joined the board of IFG in December 2013, elected not to receive a £140,000 bonus in respect of 2016 given the company’s poor fiscal performance.

IFG Group, a Dublin-headquartered but UK-focused financial services company, last month reported a 10 per cent rise in revenue at its key subsidiaries as total assets under administration rose 14 per cent to £26.7 billion (€30.9m) last year.

However, the company, which offers financial solutions through its UK-based units James Hay Partnership and Saunderson House, recorded a 26 per cent decline in pretax profits to £6.4 million, having recorded an 86 per cent jump a year earlier to £8.6 million.

IFG completed a major restructuring in 2015, with the sale of its Irish pension and advisory business for €13.5 million to Willis Ireland in late 2014. Its sole focus is now on the UK wealth platform and high net worth advice markets via its UK subsidiaries.

Revenue from James Hay and Saunderson House combined increased 10 per cent last year to £78.5 million, while adjusted operating profit decreased 14 per cent to £10 million, largely as a result of increased investment spend and rising interest rates.

The annual report shows the company’s non-executive directors received payments totalling £1.04 million last year, as against £1.3 million in 2015.