Dáil Éireann Debate, Wednesday - 18 April 2012
198 Deputy Éamon Ó Cuív asked the Minister for Finance the number of persons employed in Allied Irish Banks in receipt of salaries of over €250,000; the reason that this is acceptable in a bank that is controlled by the State; the reason that the ceiling on remuneration in the public service does not apply to this institution; and if he will make a statement on the matter. [19031/12]
View answerI am advised by the institution that there are currently twenty four (24) employees earning a base salary greater than €250,000 (this includes EBS Ltd.). I am further advised that the comparable figure at end 2008 was thirty three (33). Previous Government policy on remuneration at the covered institutions was dictated initially by the recommendations of Covered Institutions Remuneration Oversight Committee. On foot of these recommendations the then Government decided to implement a base salary cap of €500,000 on senior executives. Consequent on the State's investment in the bank in December 2010 this policy was extended so that no employee may earn aggregate remuneration (excluding pension contributions) but including without limitation annual base salary, bonuses and variable pay components in excess of €500,000.
Following on the State's further investment in July 2011, this policy — which is present Government policy — was amended further to state that no employee may receive total aggregate remuneration (excluding pension contributions) but including without limitation annual base salary, employment bonuses, commission payments and fringe benefits in excess of €500,000.
The Government's bona fides in this area have been honoured by the remuneration packages agreed recently for the respective Chief Executive Officer positions at AIB and Permanent Trustee Savings Bank being contained within these parameters.
While I accept the Deputy's premise that a salary of €250,000 is a considerable amount of money to pay an individual I do not accept, for a variety of reasons, that the pay ceilings introduced for CEOs of Semi States and Senior Public Sector posts should apply at the bank at this time. The bank, which is one of the two universal pillar banks in the Irish financial system, continues to operate as a separate economic unit with independent powers of decision and functions independently from me as Minister in relation to its day-to-day operations. My objective is to support remuneration levels which, having regard to the capital and financial position of the bank, are balanced and sufficient at all levels across the organisation in the current market to attract, motivate and retain the type of experience and talent which is required to achieve its objectives — the primary one being to protect and enhance the value for the Exchequer in relation to the substantial investment made by the State.
