PAGES 50 to 53 of CRH's latest annual report are illuminating. These pages provide a clearer view on what the senior managers - CRH are paid and should be welcomed by the shareholders.

For too long, the annual reports, of publicly quoted companies, have given only the scantiest of information about directors' remuneration. Yes, they all adhere to Irish legal requirements and to the guidelines set by the institutional investors. But, generally they do not budge beyond that and they seem to have an aversion to volunteering any extra information.

CRH does not go as far as British companies. These companies indicate directors' remuneration in defined bands, show what the highest executive director is paid, and give specific information on the chairman. Nevertheless, CRH's refreshing approach is a move in the right direction and, in some ways, is ahead of many British companies. CRH is very precise in breaking down the remuneration, for example, even though if it does not indicate who receives what.

What is particularly interesting is that incentive payments boosted the executive directors' basic salary, amounting to an average £224,114, by a cool 79 per cent, to an average total of £401,240. This was 25 per cent higher than the 1994 level.

Without an explanation about these incentives, shareholders may have gasped. But CRH indicates why and also partly quantifies the payments.

The group makes clear that it operates two incentive schemes, an annual cash incentive plan and a longer term cash incentive plan. They run in tandem. Directors of other companies would benefit from looking at the detail given to the CRH shareholders which are summarised as follows.

The annual plan has two components: (1) Based on individual performance in line with annual plans with a maximum award of 10 per cent of basic salary: (2) Based on regional and/ or group profitability with "challenging" targets in excess of target with a maximum of 25 per cent of basic salary.

The longer term plan also has two components: (1) Earnings per share growth targets: (2) Return on net assets. Returns are relative to other multi national groups. The maximum earnings potential is 25 per cent of basic salary. In addition, the chief executive has a special plan based on "exceptionally challenging" targets.

While CRH regrettably does not publish the targets, it is fairly obvious that the group has performed well, in line with specific targets. And importantly, these payments appear to have some transparency.

AIB was embarrassed into giving a partial breakdown of remuneration in 1995 when figures for 1994 indicated that executive directors were receiving an average increase of £162,500 which brought the average remuneration up to more than £600,000 per annum. It transpired that Jerry Casey, chief executive of the US subsidiary, received a total of £1.17 million (including pensions) which distorted the averages.

The report for 1995, published last week, continued with the breakdown. It does not identify the highest paid director but it is obvious that it was Jerry Casey, whose basic salary fell from £357,000 to £332,000 (unchanged in dollar terms), and his long term incentive fell from £323,000 to £181,000. But he received a performance related bonus of £273,000, bringing his total (excluding pension contributions) to £786,000, up from £680,000.

However, unlike CRH, which gives more details of the incentive/performance schemes, AIB vaguely explains that executive directors are eligible for variable bonuses based on the achievement of performance related objectives and packages which are designed to "encourage them to enhance the company's performance". In addition, to find out the average number of directors involved, shareholder will have to flick to another page. CRH, in contrast, even works out the average basic salary received by the executive directors.

The Educational Building Society also moved ahead last week in its annual report. Although it is not a publicly quoted company, its annual report disclosed that its highest paid director (Pat O'Reilly, chief executive) was paid £175,000.

In contrast, the First National Building Society did not make such a disclosure nor did it give details of the £198,000 bonus paid to the executive directors. Very few Irish publicly quoted companies, not even CRH, indicate what they pay their highest paid executive.

CRH, however, has shown the way forward, not only for the information provided, but also the clarity in which it is presented. Other companies have a long way to go to match its annual report.

But even CRH could take that further step forward and indicate what the highest paid director was paid and publish the targets that triggered the incentive payments.