MR David Rutledge, the former chief executive of engineering group Unidare, has been paid compensation of £150,000 for loss of office, according to a note in the group's 1994/5 annual report.

Mr Rutledge stepped down from the top Unidare post at the end of 1994 after eight years in the job. Last October, he joined the Livestock and Meat Commission in Belfast, as chief executive designate. He became chief executive this month. Mr Rutledge was not available for comment yesterday. The commission is responsible for the marketing of Northern Ireland meat in Northern Ireland and in Europe.

The decision to make a payment to Mr Rutledge was made by the Unidare board after he left, Mr Peter Gray, Unidare's finance director, told The Irish Times. The group's nominations and compensation committee recommended the payment. It was a "gratuity in recognition of the service he made to the company," said Mr Gray.

Mr Rutledge, now in his late 40s, joined Unidare in 1972, and advised the Unidare board early in 1994 that he wanted to retire as chief executive. At the time, chairman Mr Jim Culliton, paying tribute to Mr Rutledge, noted that six to seven years is the normal term of appointment for a chief executive.

As chief executive, Mr Rutledge oversaw the transition of Unidare from a manufacturing company into one that now derives most of its revenue from distribution in the US, Britain and Europe. He had 72,982 Unidare shares and options of over 60,300 shares, at 270p to 403p, when he retired. He has retained these shares and options.

The shares were last dealt in at 300p (12 months high 335p, low 270p).

Mr Rutledge was replaced by Mr Paul Duggan, who had been the head of Unidare's largest subsidiary, the Minneapolis St Paul based distributor of welding and safety equipment, Nasco. He has continued the movement away from manufacturing into distribution with the sale of sites in Finglas and London, and sale of Unidare Environmental to Glen Electric.

Mr Culliton, in his annual review to shareholders, said Unidare has budgeted for a slower start to the year. However, a build up of momentum is expected in the second half arising from sales and marketing initiatives across all businesses, especially in the US.

Each of the main businesses in the first quarter "are broadly in line with their budgets", be said. Nasco, the US subsidiary, has won a tender for the business of the largest buying group in its market. The benefits from this, he added, should flow through in the second halt.

Latest results showed a return to a pre tax profit of £8.13 million in the year ended September 30th, 1995. Following the disinvestment programme, Unidare is back in the market for acquisitions and has earmarked around £14 million for purchases.