Dáil Éireann Debate, Tuesday - 16 April 2013
244. Deputy Pearse Doherty asked the Minister for Finance further to the recent publication of the report and accounts for Bank of Ireland for 2012, in which the Chief Executive Officer confirmed that he had waived €67,000 of his remuneration, if he has sought waivers of salary at Bank of Ireland; and if he will make a statement on the matter. [16287/13]
View answerAs reported in Bank of Ireland’s Annual Reports since 2009 the Chief Executive Officer of Bank of Ireland has waived his remuneration each year by €67,000. Each year, since 2009, all Non-Executive Directors have also reduced their fees by 25%. In 2012 the total director’s remuneration at Bank of Ireland fell to €2,564K from €3,351K in 2011 – a reduction of 23%. I, and the Government, acknowledge that sacrifices and changes have been made to date by bank employees at all levels. Much has been achieved.
However, when publishing the Review of Remuneration Practices and Frameworks at the Covered Institutions, on 12 March 2013, I indicated that the Government had formed the view that with the remaining covered institutions still incurring losses it was an inescapable conclusion that the cost base of the institutions needs to be reduced further. This is essential if they are to return to profitability and to be in a position to support the economy.
Therefore, on behalf of the Government, I have now directed the banks, including Bank of Ireland, to come up with plans as to how they intend to address this issue in a manner that can help meet the State’s objectives. I expect the value of those plans to mean a saving of 6% - 10% of total remuneration costs, through reductions in payroll and pension benefits, new working arrangements and structures that deliver efficiency gains.
