Paddy Power CFO, Cormac McCarthy, has recently been awarded a very generous bonus package from his employers which could potentially up his personal fortune by over 2 million Euro. The newly appointed CFO was awarded 35,000 conditional shares last week and according to market reports, they are worth approximately 2.02 million Euro.
McCarthy is used to dealing with large sums of money, as the former head Ulster Bank. The shares were given to him as part of Paddy Power’s
2004-long term incentive plan and will keep him tied to the online gaming giant until at least 2015. At this point the shares may be vested but it is likely that there will be very specific terms and conditions that will apply to these shares if McCarthy will then wish to get a full payout.
A spokesman for the company was quoted in the Irish Independent as saying that the awards would vest if earnings per share would by grow by an amount at least equal or more to the compound growth of the consumer price index plus 12% per annum, over a three year period.
McCarthy joined Paddy Power after a successful stint at the chief of Ireland’s third biggest bank, Ulster Bank. After the bank was facing financial uncertainty, he resigned in 2010 but remained on for over a year until a suitable replacement was found. In October this year he joined Paddy Power as their CFO.
Successful Year for Paddy Power
The generous bonus payout to McCarthy does not come as much surprise. It has been a relatively successful year for the betting giant with recent reports of a 23% increase in net revenue for the period of July – November 2012. As part of its continued growth Paddy Power has joined forces with the Welsh Rugby Union to become its online betting partner.
Paddy Power has promised to provide Welsh fans with unrivaled value and will offer “fun and innovative promotions” each time Welsh teams take to the field. A spokesman for Paddy Power commented that they were thrilled to be working besides the Welsh Rugby Union because they share common values such as a passion and commitment to entertaining betting fans during sporting events.
The Welsh Rugby Union said that Paddy Power was a legend in the industry and that they looked forward to working together to bring exceptional entertainment to their fans.