Ex-chief executive Lee leaves CRH with €4.2m package

CRH's shareholders will get to vote this year for the first time on the pay levels of its executive directors, including the €4.16 million package for outgoing chief executive Myles Lee, which will be outlined in its latest annual report.

Ireland’s largest listed company has filed a 30-page directors’ remuneration report as part of an advance “20-F” annual report filing with the US Securities and Exchange Commission.

It reveals Mr Lee, chief executive from 2007 until last December, was awarded almost €3 million in benefits on top of a €1.2 million salary in 2013. His package included a €421,000 cash bonus, €1.6 million under an incentive plan and a pension payment of €980,000.

The next highest earner was Mark Towe, head of CRH's US operations, with €2.85 million.

Former chief operating officer Albert Manifold, who has replaced Mr Lee on a €1.2 million salary, was paid almost €2 million in 2013. Finance director Maeve Carton, received a total package of almost €1.4 million.

The company recently announced it has taken a writedown of €755 million on 45 poorly performing units it is selling off. Mr Manifold said CRH "forgot its core principles" when making some acquisitions in the boom.

CRH, which is listed in London and Dublin, says in its 20-F that it has voluntarily adopted new “say on pay” rules from Britain. This means shareholders can vote on executive pay at its annual meeting this May.

“While as an Irish incorporated company, CRH is not subject to those UK regulatory requirements, the group has sought to apply [them] on a voluntary basis,” it said.

The 20-F reveals CRH last year overhauled its executive pay policies for bonus and incentive arrangements. The review found Ms Carton was underpaid, and increased her salary from €570,000 to €625,000 in 2014 and €675,000 for 2015.

An executive incentive plan is to be “simplified”, with share- based payments of up to 25 per cent of base salary for the chief executive and 200 per cent for other executive directors. Up to 350 per cent will be payable “in exceptional circumstances”.