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Escher Group Holdings plc
Annual report 2011
38
for the year ended 31 December 2011
Notes to the consolidated financial statements
continued
7. Expenses by nature
continued
(a) continued:
2011
Directors’ remuneration
Salary/fees
US$’000
Benefits in
kind/car
allowance
US$’000
Bonus
US$’000
Post-
employment
benefits
US$’000
Total
US$’000
2010
Total
US$’000
Executive Directors
Liam Church
292
6
—
29
327
306
Fionnuala Higgins
292
30
—
29
351
311
Trevor McIntyre
(1)
91
2
—
8
101
—
675
38
—
66
779
617
Non‑executive Directors
Bernard Somers
37
—
—
—
37
—
John Quinn
21
—
—
—
21
—
Michael Smurfit Jnr
21
—
—
—
21
—
Paul Taylor
(2)
21
—
—
—
21
—
100
—
—
—
100
—
Total remuneration
775
38
—
66
879
617
(1) Appointed as Director on 11 July 2011.
(2) Appointed as Director on 31 July 2011.
(b) The Group obtained the following services from the Group’s auditors at cost as detailed below:
Auditors’ remuneration
2011
US$’000
2010
US$’000
Remuneration of the auditors for the statutory audit of the individual and Group financial
statements is as follows:
Audit of the parent individual financial statements
11
11
Audit of the Group financial statements
133
111
Tax advisory services
42
55
Other non-audit services
18
—
204
177
Other assurance services
756
—
960
177
Included in other assurance services are US$0.8 million of costs arising from various refinancing projects and the IPO. Directly
attributable costs of US$0.5 million in relation to the IPO have been deducted from equity, while US$0.3m has been included
in exceptional costs in the income statement.
(c) Employee share based payments
The ultimate parent company operated a share based compensation plan which ended in 2010. Certain employees were awarded
shares in the ultimate parent company. The award of these shares was not subject to performance conditions and the share
awards vested immediately. The parent issued new shares directly to the recipients. The ultimate parent company did not
charge the subsidiaries of which the recipients are employees for the transaction.
In the consolidated financial statements, the transaction is treated as an equity-settled share based payment, as the Group
has received services in consideration for the Group’s shares. An expense is recognised immediately in the Group income
statement for the grant date fair value of the share based payment, with a corresponding credit recognised in equity.
In the ultimate parent company’s entity financial statements, there is no share based payment charge as no employees are
providing services to the ultimate parent. Consequently, the parent’s investment in the subsidiaries is increased by the cost
of the share award as a capital contribution from the parent and a corresponding credit is recognised in equity (see note 21).
The cost of the equity settled amount recognised in the year was US$nil (2010: US$267,000). The expense in relation to
these shares is based on the fair value of the shares at the date that the award was granted using free cash flows adjusted
for the time value of money and stripping out the value of debt from the enterprise value to obtain the value of equity.