Former Elan chairman drew down $1.2m for 2002

Former Elan executive chairman Mr Donal Geaney drew remuneration of $1.2 million (€1.08 million) from the company last year, according to its annual report, which was filed with the Securities and Exchange Commission (SEC) yesterday.

Mr Geaney, who stepped down from his position in July last year, also received a payment of $554,684 in his capacity as "former director". As part of a deal negotiated upon his departure, he will remain as a senior adviser to the firm's chairman until mid-2004.

Part of Mr Geaney's 2002 package reflected a bonus of $640,000 in respect of 2001, when his total pay was almost $3 million. Mr Tom Lynch, who also left Elan in July last year, was paid $962,875 for his service as vice-chairman in 2002, down from $1.6 million the previous year. He was also awarded a payment of $442,875 as a former director.

The annual report shows Elan's 12 non-executive directors shared remuneration of $935,000 in 2002, up from $615,000 in 2001.

The shares continued to climb in Dublin after the 20-F filing, closing 10 cents higher at €5.40. However, in New York, where the stock is mainly traded, shares were down 18 cents to $5.70

The report was originally due for filing at the end of June, with recent delays attributable to discussions with company auditors KPMG. The accounting firm's hesitancy to sign off on the numbers is reflected in the 20-F by the insertion of a "fundamental uncertainty" paragraph within the auditors' report. The note points to the risks attached to the class action being taken against Elan by disgruntled shareholders and the continuing SEC inquiry into its accounting practices.

Mr Peter Frawley, analyst with Merrion Stockbrokers, said the inclusion of the note "would not be unusual". He said the 20-F contained little in the way of surprise, aside from flagging a probable delay to Elan's Alzheimer's programme and offering some update on the firm's disposal programme.