The report by Con Lucey into the corporate governance of the IFA has been released.
The report gives a detailed breakdown of the pay of the Presidents and Deputy Presidents of the organisation since 2009.
The report comes in the wake of pay revelations in the country’s largest farming organisation which has seen the resignation of its President and General Secretary.
Termination payments
Of note from the figures revealed in the report is that each President was the recipient of a termination payment equivalent to one year’s remuneration on leaving office. In the case of former President Padraig Walshe, the payment was in excess of €180,000
The Presidents of the IFA were also each invited to the board of FBD Holdings during their tenure. The current directors’ fees level is €39,600.
Click images below to see Remuneration of the President and Deputy President from 2009 to 2015
See below the remuneration of former IFA General Secretary Pat Smith
Lucey assessment of Remuneration of President and Deputy President
According to Lucey, the main problem is that the level of salary has become disconnected from the original purpose of the payment, which was to ensure that the farm did not suffer during the term of office of the President and Deputy President.
He said a factor that must be taken into account in setting such payments is that they are subject to taxation.
The second problem he said is that there is no clear ruling on payment from directorships of outside bodies.
Former IFA President Eddie Downey
Lucey said in the future, the Remuneration Committee will make recommendations to Executive Council on such payments.
I suggest that the following two points of principle should be considered by the Remuneration Committee.
“First, the payment to the President should be based on the gross cost (before taxation) of replacing the labour and management of the President on a seven day week basis.
“Second, this should be the total payment, and payments to the President from outside bodies should be paid into IFA funds, other than any expenses arising from the involvement in the outside body,” he said.
Alternatively, if this is not practical, he said the fees should go to the individual but the payment from IFA should be reduced by the same amount.