The new chief executive of Iona Technologies, Peter Zotto, will earn an annual base salary of $320,000 (€259,000) and is entitled to a bonus worth up to $224,000.

Mr Zotto, who was unveiled as the successor of Iona Technologies founder and chief executive, Dr Chris Horn, last month, has a three-year initial contract. This can be followed by successive one-year contracts, according to the firm's latest annual report.

Mr Zotto, a former executive of Digital Equipment Corporation, will also be eligible for a pay off worth more than €500,000 if his contract is terminated without cause or good reason.

The annual report, which has been filed with the US Securities and Exchange Commission (SEC), also shows that Dr Horn earned $459,947 in salary and bonus payments during 2004.

Mr Zotto, who during 2004 held the role of chief operating officer, was paid $352,000 during the year, while Iona Technologies non-executive chairman, Mr Kevin Melia, was paid a total of $160,500.

Mr Melia, who is one of three members on the company's compensation committee, received special remuneration of $84,000 for his service as the chairman of the board, according to the annual return.

The total wages and bonus payments made to the board of directors, which does not include the award of stock options, was $2,330,552, slightly more than $2,197,058 paid out during 2003.

The 12-member board of directors and executive officers got pension and retirement benefits worth $69,998 in 2004. They also hold options on 1,398,330 shares.

The five non-executive directors on the board - William Burgess; John Conroy; Ivor Kenny; James D. Maikranz; and Francesco Violante - were each paid an average of $59,700 during 2004.