Dáil Éireann Debate, Thursday - 6 November 2008
15 Deputy Michael D. Higgins asked the Minister for Finance the details of the proposed committee which will address issues relating to remuneration structures in the financial sector here including its membership, terms of reference and implementation timescale; and if he will make a statement on the matter. [38841/08]
Amharc ar fhreagraThe Scheme prepared under the Credit Institutions (Financial Support) Act 2008 requires each covered institution to prepare a plan to structure the remuneration packages of directors and executives, including total salary, bonuses, pension payments and any other benefits, so as to take account of the objectives of the Act.
I will shortly establish the independent, three-member, committee, to be called the Covered Institution Remuneration Oversight Committee ("CIROC") provided for under the Scheme. Each covered institution is to submit a report to CIROC no later than six weeks after joining the Scheme, and CIROC will then report to me within three months. An institution which has not complied with the requirements can be directed to amend its remuneration plan accordingly.
It is important to emphasise that one of the key features of this part of the Scheme is the requirement to orient the system of bonuses to create the appropriate incentives — incentives that point toward reduction in excessive risk-taking and that promote long-term sustainability. I believe that this, together with other controls and requirements incorporated in the Scheme, will make a real difference and greatly strengthen our financial system for the future.
