Smurfit Kappa directors reap windfall on options

Five directors in Smurfit Kappa have shared a windfall of millions of euros after exercising stock options and immediately selling the shares.

The sales came just after the paper and packaging group posted quarterly earnings 10 per cent ahead of forecasts.

The biggest winner in the transactions was group chief operations officer Tony Smurfit, who spent €2.4 million exercising options at €5.69 before selling them at the market price of €8.44. This led to a profit before costs of €1.16 million, although Mr Smurfit balanced some of his gain against a €422,000 purchase of additional shares at €8.44.

Group chief financial officer Ian Curley spent €1.2 million on the exercise of 239,022 options and then sold them at €8.44, netting a profit before costs of almost €788,000. Mr Curley also purchased shares at the market rate, spending €71,740 on a block of 8,500 shares.

Group chief executive Gary McGann exercised options over 268,630 shares, spending €1.3 million. He later sold 218,630 shares, raising €1.8 million before costs.

Smurfit Kappa group secretary Michael O’Riordan cleared €362,188.35 before costs, while group treasurer Paul Regan realised options over 140,000 shares for €745,285 and sold 95,000 shares to raise €801,800. Performance was boosted by stronger paper prices and a tight grip on costs.

Smurfit has been recovering from low prices in the recession. Its shares closed 24 cents down at €8.30 after the director share sales. – (Additional reporting Reuters)