CRH to transfer performance share awards to chief executive
By Maurice Garvey
BUILDING materials giant CRH has set up a special trust to ensure its chief executive Albert Manifold maintains a sizeable shareholding for a period of two years following his exit from the business.
From this year, CRH is to transfer performance share awards made to Manifold into a third party trust until they reach a limit of twice the chief executives annual salary, which is currently €1.5m.
CRH is located on the Belgard Road
Once the value of the shares reaches €3m, they will be held in a trust until Manifold leaves the company and then for a further two years.
The move comes as investors push for companies to implement the UK Financial Reporting Council’s corporate governance code.
The code calls for a formal policy on post-employment shareholdings.
The rules are designed to promote long-term shareholdings by chief executives even beyond the term of their contracts.
In a note, investment advisory firm GillenMarkets said Manifold’s consistent selling of share awards was a “lingering issue”.
Chief executive Albert Manifold
In the past year Manifold has sold shares to a value of €10m.
At the end of 2019, he owned shares valued of just over €40,000.
Gillen welcomed the new board shareholding policy.
Manifold is expected to hold 3.5 times his salary in CRH shares by the end of 2023.
He currently holds 3.45 times his salary in stock, but the vast majority is held in unreleased share awards.
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