Swiss Irish food group Aryzta has withheld the €958,000 performance related bonus of its chief executive Owen Killian.
The bonus has been withheld until the “resumption of growth in underlying fully diluted earnings per share”.
Mr Killian’s other incomes from the company, namely his salary, benefits in kind, and pension contributions, have remained unaffected.
The Aryzta boss’ salary is 1.277m swiss francs (€1.17m), while his benefits in kind and pension contributions amount to €76,050 and €176,000 respectively.
Pressure has continued to mount of the bakery boss who has lost a number of contracts in the US, where it supplies products to global chains like Subway and McDonalds.
Investors in the firm are also uncertain about the company’s decision to spend €451m on a 49pc stake in French food firm Picard.
However, in a letter to shareholders chairman Denis Lucey said the company needs to continue to evolve “as the lines are blurring between previously delineated food channels”.
“Picard performed well in terms of revenue and EBITDA growth since our investment, and generated €40.5m of free cash,” he said.
Mr Killian didn’t endear himself to shareholders recently when he sold €16m worth of shares in the company.
The news comes off the back of lacklustre results for the firm’s last financial year.
In the twelve months to the end of July Aryzta’s underlying net profit fell by more than 13pc to €311,542, while its earnings per share dipped by 12.9pc to €3.50.
The Zurich-headquartered company posted a 1.5pc increase in revenue last year, rising to €3.87bn.
Aryzta said that its earnings before interest, tax, and amortisation (EBITA) declined 5.7pc to €484.8m. During the period the group’s EBITA margin was 12.5pc, lower than the 13.5pc it posted for the previous year.
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