Senior executive in Irish Life quits firm

IRISH Life executive development director, Mr Peter Fullam, is leaving the life assurance group in June

IRISH Life executive development director, Mr Peter Fullam, is leaving the life assurance group in June. Mr Fullam (50) only became development director last November, having spent just over four years as group chief financial officer.

His move follows a number of high-profile departures since the company was floated in 1991 including the former chief executive of Irish Life Ireland, Mr Brian Duncan, who left in 1994.

It comes as the group is embroiled in a protracted dispute with its sales staff over changes in work structures and practices.

Irish Life, which released its 1996 annual report yesterday, declined to disclose the departure terms agreed with Mr Fullam. This was "confidential information", the group spokesman said.

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Mr Fullam is an employee of the group and is not on a fixed-term contract.

The annual report showed that 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.

Mr Fullam joined Irish Life in 1992, during the restructuring which followed the departure of the group chief actuary and financial officer, Mr Brendan Hayes. He came from AT&T Network Systems (UK) where he was managing director.

In a surprise move last November, he left the finance area to take on a number of specific development projects. He was replaced as chief financial officer by Mr Stephen Shone. Group sources said Mr Fullam indicated at that time that he was considering leaving the group.

His projects included acquisitions in the US, the future of French subsidiary Xaar and the development of Irish Life International. He is expected to complete arrangement for the future of Xaar before he leaves Irish Life. The group is considering finding a partner for Xaar, which is a smaller player in the French market, or selling the company.

Because of his desire to "seek new challenges outside the group" Mr Fullam asked not to be considered for re-election to the board at the a.g.m. on May 15th.

The group spokesman described the parting as "amicable". He said Mr Fullam was considering working in the financial services sector in France.

An announcement to the Stock Exchange by Irish Life yesterday showed that Mr Fullam exercised options to buy 114,969 shares on Tuesday and then sold those shares.

He bought the shares at 163p and 280.5p and sold them at 323p. On a rough average his profit on the transaction was about £116,000. A group spokesman explained that executive directors were required to exercise all their options before they left the company.

The annual report shows that Mr Fullam was the only director to exercise share options and sell the shares acquired during 1996. He bought 85,000 shares at 181.2p, when the market price was 261.9p, and then sold the shares, generating profit of £68,595.

Irish Life's annual report shows that the group has long-term incentive arrangements with two executive directors - Ms Jean Wood and Mr Ron Butkiewicz.

At the end of 1999, Ms Wood is, entitled to a payment equal to 1 per cent of the growth in the appraisal value of Irish Life International between December 31st, 1994, and December 31st, 1999. Interim payments can be made in December 1997, and December 1998, based on the growth in value at those dates.

Mr Butkiewicz's incentive plan is linked to the growth in the embedded value of Irish Life of North America between December 31st, 1993, and December 31st, 1999 - he is entitled to a maximum payment of 25 per cent of his aggregate salary in the five year period to December 31st, 1999.