Dáil Éireann Debate, Tuesday - 10 February 2009
215 Deputy Charles Flanagan asked the Minister for Finance if, in view of the nationalisation of Anglo Irish Bank, he has issued a direction in respect of salary scales to executives of the bank; and if he will make a statement on the matter. [4451/09]
View answerThe Deputy will be aware that the remuneration of directors and senior executive staff of Anglo Irish Bank Corporation is being considered in the Covered Institution Remuneration Oversight Committee, established under the Credit Institutions (Financial Support) Scheme 2008. The Scheme provides for controls on executive remuneration in institutions covered by the Guarantee.
The Scheme requires each covered institution to prepare and submit a plan to structure the remuneration packages of directors and executives so as to take account of the objectives of the Credit Institutions (Financial Support) Act 2008. Remuneration is taken to include total salary, bonuses, pension payments and any other benefits received. In the context of these plans, bonuses will be measurably linked to reductions in the guarantee charges, reduction in excessive risk taking, and encouraging the long-term sustainability of the covered institution.
The relevant plans have been prepared and submitted by the covered institutions, including Anglo Irish Bank, and in line with timeframes set out in the Scheme, the Committee will report to me on or before the 5th March 2009, making a recommendation where appropriate, on the compliance by the institution with the terms of the Scheme. The Scheme provides that if required, I may direct the institution to amend the remuneration plan to comply with the Scheme.
As with the other covered institutions, the terms and conditions of employment for less senior staff are a matter for the Board of Anglo.
