Kingspan CEO’s total pay packet cut by 19%

By Geoff Percival

Kingspan chief executive Gene Murtagh’s total pay packet fell by more than 19% last year, the specialist building materials group’s latest annual report shows.

While Mr Murtagh’s basic salary actually rose — from €698,000 to €770,000 — his total remuneration package declined by almost 19.4%, to €1.54m, as Kingspan’s slower earnings per share growth, in 2017, meant a smaller portion of performance-related bonuses were paid to executive directors.

In order for Kingspan’s executive team to qualify for 100% of their performance-related bonus, which stands at 150% of basic salary, the group must generate at least 30% earnings per share growth in the year.

While earnings per share grew by 33% in 2016, growth was just 10.6%, by comparison, in 2017.

Chief financial officer Geoff Doherty saw his total pay fall from €1.44m to just over €1.1m last year.

Total remuneration for Kingspan’s executive management team fell by 27% to €5.22m.

Kingspan grew revenues by 18% last year to €3.7bn and trading profit by 11% to €377.5m, while also proposing a final dividend of 26c which will, if approved by shareholders, boost the group’s annual payout to investors by 10% to 37c.

However, on the back of those results, last month, the group warned of increasing weaknesses in the UK insulated panels market, which represents 25% of group revenues, due to continued Brexit uncertainty.

Mr Murtagh recently said that he expects trading to pick up from a slow start in the first half of the year thanks to the group’s healthy order book.

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