IMO releases details of €10m settlement with outgoing chief executive George McNeice

Wednesday 13 March 2013 18.56
The IMO also had to accept a €4m writedown on the value of its offices on Fitzwilliam Place in Dublin
The IMO also had to accept a €4m writedown on the value of its offices on Fitzwilliam Place in Dublin

The Irish Medical Organisation has published full details of the controversial €10m pension settlement with outgoing chief executive George McNeice.

Shortly before Christmas, it emerged that Mr McNeice, who is in his early 50s, had a pension fund entitlement potentially worth up to €25m.

He subsequently agreed to settle for entitlements totalling €9.7m.

According to the 2012 accounts published today, in addition to a pension fund of €4.5 million, Mr McNeice will receive a termination payment of €1,495,850 as provided for in his contract.

He will also receive annual payments of "some €200,000" per year from 2016 to 2021, and €250,000 per year from 2021 to 2032.

The present value of these payments is around €2,682,861.

The IMO also had to accept a €4m writedown on the value of its offices on Fitzwilliam Place in Dublin.

However, the IMO said it has reserves of over €3.2m - despite the controversial pension settlement and the property writedown.

IMO Treasurer Professor Sean Tierney said the accounts highlighted the continued financial strength of the organisation.

He said that no members' subscriptions would be required to fund the settlement with Mr McNeice.

Meanwhile, IMO membership has fallen from 5,339 at the end of 2011 to 5,053 at the end of 2012.

Prof Tierney said there was no evidence that disquiet over the settlement with the CEO had led to a change in those numbers of any significance.

He said that this was "in line with a traditional pattern" - as in the early months of each year, there is often considerable turnover as members retire, lapse or resign, and others join.

The accounts show that during 2012, the IMO generated income of just over €5 million - down 11% on 2011.

However, the organisation tackled costs aggressively, reducing normal expenditure by 17% from €4.8m in 2011 to just under €4m in 2012.

The IMO employed an average of 34 people during 2012 on an average salary of €52,000.

All employees are in a defined contribution scheme.