Irish Life chiefs get 21% payments rise

AVERAGE salaries paid to Irish Life executive directors rose by 17 per cent last year while their total remuneration packages - when pensions, bonuses and other benefits are included - rose by an average of 21 per cent.

The group's annual report released yesterday shows that the cost of remunerating executive directors rose to £1,046,000 in 1996, compared with £433,000 in 1995.

While there were four executive directors in 1996 compared with two in 1995, the average payment per director rose by 21 per cent. Operating profits rose by 9 per cent to £93.1 million last year.

Irish Life announced yesterday that one of the executive directors is leaving the group in June. Development director Mr Peter Fullam has told the company that he wants to "become involved in new challenges" outside the group.

The four executive directors of the group are managing director Mr David Kingston, the chief executive for Ireland and the UK Ms Jean Wood, Mr Fullam and the president and chief operating officer of Irish Life of North America, Mr Ron Butkiewicz. Ms Wood and Mr Butkiewicz joined the board on February 1996.

The four shared total remuneration of £1,046,000 in 1996, an average of £261,500 each. In 1995 there were only two executive directors - Mr Kingston and Mr Fullam and they shared £433,000, an average of £216,500 each.

Executive directors got an average salary rise of 17 per cent in 1996. The salary element of the package rose from £312,000, or an average of £156,000 each, to £732,000, or an average of £183,000 each.

Bonus payments to executive directors rose from £57,000 to £198,000, or from an average of £28,500 to £49,500 each.

The annual report shows that Irish Life has long term incentive arrangements with two executive directors - Ms Wood and Mr Butkiewicz.

Nine non executive directors shared £220,000, an average of £24,444 each, down from £229,000, or £25,444 each in 1995. Non executive director Mr Monty Hilkowitz got an additional payment of £56,000 in "special fees" for "additional services provided to Irish Life's investment division".

In addition, companies in which Mr Hilkowitz has an interest received payments from Irish Life, International of £84,627 in 1996, up from £82,903 in 1995. In January this year Irish Life agreed to pay a company called Trenwick £201,000 for consultancy services from Mr Hilkowitz to Irish Life's investment division for one year.