Smurfit paid McGann €2.49 million last year

International packaging group Smurfit Kappa paid its chief executive Gary McGann almost €2.49 million last year, 2 per cent less than in 2011, figures published yesterday show.

The Irish company’s annual report, which was sent to shareholders yesterday, shows that Mr McGann’s pay packet totalled €2.488 million in 2012, slightly down from the €2.541 million he earned the previous year.

His basic salary was €1.262 million and he made a bonus of €567,000. The company paid €625,000 into his pension fund and he received benefits of €34,000.

Mr McGann also received a total of €137,000 in fees from healthcare services group, United Drug and Aon Ireland. He is a non-executive director of both companies.

Mr McGann held 375,792 shares in the group on December 31st, 50,000 more than 12 months earlier.

He also holds convertible shares that can convert to ordinary stock if performance targets agreed in 2007 are met.

Pay cut
Chief operating officer Tony Smurfit also took a small pay cut, earning €1.543 million last year compared with €1.582 million in 2011, a fall of 2.5 per cent. His basic pay was €874,000, his bonus was €392,000, the company paid €255,000 into his pension and he received €22,000 in benefits.

Mr Smurfit almost doubled his stake in the company, with his holding increasing from 572,621 shares to 1,030,568 in 2012.

Chief financial officer, Ian Curley, took a 1.3 per cent pay cut last year, earning €1.354 million as against €1.399 in 2011. His basic pay came to €746,000 and he made a bonus of 363,000, while the company paid €205,000 into his pension and his benefits came to €40,000.

Mr Curley marginally increased his stake in the group to 204,267 shares from 193,767.

All three executives received deferred share awards under a bonus scheme operated by the company, which according to its accounts, was worth a total of €3.964 million on December 31st.

The shares will actually vest in 2014 subject to the executives meeting performance targets for the 2011-2014 period. The report does not say what the targets are.

Chairman Liam O’Mahony earned fees of €300,000 last year and owned 19,830 shares on December 31st.

Smurfit Kappa was one of the better performers on the Irish market last year, and has doubled in value since last April. Last night it closed at €12.85 in Dublin, on April 2nd 2012, its closing price was €6.737.

It made profits of €331 million last year, more than 10 per cent ahead of the €299 million it earned in 2011. Earnings per share rose 20 per cent to 108.3 cent.