End of the line for chairman

Mr Donal Geaney yesterday signalled the end of a relationship with Elan that dates back to 1983, when the then small pharmaceutical company was seeking its first public quote.

As a manager in accountancy firm Stokes, Kennedy Crowley - now KPMG - Mr Geaney advised on the process that saw Elan become the first Irish company to float on the Nasdaq in 1984.

A business graduate of Trinity College, Dublin, Mr Geaney joined his former client in 1987, when he was appointed executive vice-president with responsibility for strategic planning.

By 1995, Mr Geaney had graduated to the role of chief executive officer, finally becoming chairman two years later when company founder Mr Don Panoz retired. This joint role, long subject of analyst criticism, has now been dissolved.

Elan's most recent annual report shows Mr Geaney owned 1.1 million shares at the end of last year, a holding that would then have netted more than $49 million (€49.38 million). As of yesterday, the shares would have fetched slightly more than $2 million.

Mr Geaney also held 2.5 million share options at the end of December, exercisable at an average price of $17.65. Based on yesterday's New York valuation, Mr Geaney has seen these options lose more than $40 million in the last seven months.

Against such a backdrop, some reassurance will no doubt be taken from the total remuneration of $2.98 million Mr Geaney received last year, when bonuses for 2000 and previous years are considered. Comfort may also come from the profit Mr Geaney made when he sold shares worth $8 million at the end of February 2001.

An Elan spokesman refused to comment yesterday on the financial conditions under which Mr Geaney and Mr Tom Lynch had agreed to leave.

Outside Elan Mr Geaney holds directorships at the Bank of Ireland and the Irish Aviation Authority.