The owners of Magners and Bulmers cider, have parted ways with their CEO Patrick McMahon after accounting errors led to the C&C Group plc taking a €17m charge to their accounts.
The prior year accounting adjustments for the period 2021 to 2023 have been made following a detailed internal and external reviews of inventory and balance sheet reconciliations. The adjustments relate to inventory matters at Clonmel, goods received and not invoiced, the timings of customer discount liabilities, and change in the accounting treatment of glassware. There are also onerous apple contracts of €12m!
And, all these problems occurred while McMahon was chief financial officer.
The board, with regret, agreed it would be in the best interest of the group that McMahon went with immediate effect. It was agreed, however, he would remain until September to help with a smooth transition.
Current chair, Ralph Findlay, has been appointed Group CEO, and is expected he will remain in post for between 12 to 18 months while a successor is found.
As Group CEO Finlay will receive an annual base salary of €702k, a pension allowance of 5% of salary in line with the contribution available for the Group’s employees, a benefit allowance of 7.5% of salary and maximum annual bonus opportunity of 125% of salary.
We were not told what McMahon’s remuneration and severance payments are!
