Paddy Power CFO in line for millions in bonus payout

Former Ulster Bank chief and recently appointed chief financial officer of Paddy Power, Cormac McCarthy, was awarded 35 000 conditional shares under the company’s “2004 long-term incentive plan” last week which according to this week’s closing price are currently worth around Euro 2.02 million.

The shares commit McCarthy to Paddy Power until 2015, the earliest in which they may vest, but certain criteria and targets must be achieved to make him eligible for a payout.

An unnamed company spokesperson said in a statement to the Irish Independent newspaper that: “The awards vest if earnings per share grows by an amount at least equal to the compound growth of the consumer price index plus 12 per cent per annum, over a period of three years.”

McCarthy’s former employer, Ireland’s third biggest banking firm, The Ulster Bank has needed billions of bailout funding from UK parent RBS and was forced to embark on a staff retrenchment programme at the beginning of 2012.

McCarthy tendered his resignation in 2010 but agreed to remain until a suitable replacement was found eventually leaving the bank in April 2011 when it appointed chief executive Jim Brown.

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