Paddy Power Betfair chief executive gets £798,000 bonus

Former Paddy Power chief executive paid a total of €2.15m in salary, benefits and shares

Earlier this month Paddy Power Betfair revealed merger costs left it with a £5.7 million loss last year

Earlier this month Paddy Power Betfair revealed merger costs left it with a £5.7 million loss last year

 

Paddy Power Betfair chief executive Breon Corcoran received a £798,000 (€926,143) bonus last year, the group’s annual report shows.

Overall, Mr Corcoran, who took over as head of the merged entity in February 2016, was paid £1.6 million in remuneration in 2016. This included a basic salary totalling £642,000, £19,000 in benefits and £96,000 in pension payments.

Mr Corcoran, previously a Paddy Power executive who later became Betfair chief executive ahead of the two companies joining forces. is to see his salary rise by 2 per cent this year to €714,000, from €700,000, the accounts show. This includes a payment for his role as a director of the group.

Former Paddy Power boss Andy McCue, who headed the company prior to Betfair merger, and who became chief operating officer of the enlarged group, was paid a total of €2.15 million in salary, benefits and shares last year.

The remuneration for Mr McCue, who left the company last April, did not include a bonus payment. However, he did receive a loss of office payment.

In accordance with his contractual entitlements , Mr McCue received €3.5 million (equal to 2.5 times total remuneration) when he stepped down from the group and the former CEO was treated as a “good leaver” under the company’s share plans.

“ With regards to Andy’s payments for loss of office, these were in line with typical practice and our legal obligations in Ireland. The committee and the board believe that the approach taken was appropriate in the circumstances of two complex businesses coming together and firmly in the long-term interests of shareholders,” the company said.

Mr McCue’s outstanding long-term incentive plan (LTIP) awards have been reduced on a pro-rate basis. Almost 20,000 shares from his 2013 LTIP award vested last May with a further 13,599 shares from a 2014 award vesting in early March.

In respect of his 2015 award, 9,276 shares will vest in April with the remaining 2,456 shares to vest on March 3rd, 2018.

Elsewhere, chief financial officer Alex Gersh, was paid a remuneration package totalling £1.01 million last year. This included a basic salary of £403,000 a £532,000 annual bonus and a €61,000 pension.

He is also to receive a 2 per cent hike in his basic salary this year to £448,000

Cormac McCarthy, who ceased to be employed by the group in February 2016, received a redundancy payment of €157,160 and a pro-rata annual bonus totalling €104,000. His total remuneration package for 2016 totalled £2.1 million.

Earlier this month Paddy Power Betfair revealed merger costs left it with a £5.7 million loss last year. The £272.3 million bill for the merger included £35.5 million in fees, £65.7 million in restructuring costs and a £21.9 million non-cash charge to replace share options granted to executives under Betfair’s incentive scheme.