IFA’s finances still in the red since €1.4m pay scandal legal case
ACCOUNTS published by the Irish Farmers’ Association (IFA) show its finances continue to be in the red since a pay scandal rocked the organisation in 2015.
The accounts for year-end March 2018 show the IFA’s finances suffered a hit following a €1.4m legal settlement with its former general secretary Pat Smith.
This related to a settlement of a legal action relating to Mr Smith’s severance and a separate defamation claim against the organisation.
Mr Smith launched the legal actions after quitting the IFA following speculation around his annual salary in 2015, which was later revealed to be more than €500,000.
“The expenditure for this year contains exceptional items totalling €1.4m which relate to the legal action with the former general secretary, which was settled in February,” IFA national treasurer
Tim Cullinan said. “Provisions for part of this settlement and ongoing legal fees had been included in previous years accounts. This matter is now concluded and the costs associated with it are fully through the system.”
The accounts showed a slight increase in income for the year at €16.252m, up €53,000 on 2017.
However, the organisation’s income has declined substantially from more than €20m prior to the pay scandal.
IFA staff costs totalled €5.385m for the year, with remuneration for director general Damian McDonald totalling €213,152.
IFA president Joe Healy’s gross salary was €120,000, this amount including director’s fees of €58,500 from outside companies. This means the IFA paid Mr Healy almost €61,500.
Total IFA executive management compensation, which comprises of three individuals, was €563,826, while the average remuneration for the top 15 staff in the organisation, excluding executive management, was €131,539.
The IFA paid deputy president Richard Kennedy €13,000 after director’s fees from outside bodies were deducted from his salary of €35,000.
Notably, the accounts show a new pay agreement was reached with the top 15 staff in the organisation, excluding executive management, during 2017 and was implemented during this financial year.
This involved pay reductions for these staff from an average of over €103,000 to €99,000.