As the Deputy is aware, the specified bank submitted its Remuneration plan to the Covered Institutions Remuneration Committee (CIROC) whose report was placed before the House on 13 March 2009. The Government considers the CIROC recommendations regarding remuneration of chief executives including bonuses, pensions, long term incentive plans, which includes stock options, are appropriate but that basic salary level should be capped at €500,000 or the salary amount recommended by CIROC which ever is the lower. Any deviation from this should be in exceptional circumstances and with my agreement and this position has not changed.
The Deputy will be aware that in the case at hand I have intervened in the matter of the level of salary for the incoming managing director to ensure that it is in line with the CIROC recommendations and the Government's cap on basic salary of €500,000. Furthermore the subscription agreement stipulates that no bonus payments are payable to senior executives for performance in 2009 and 2010. I have not yet been approached regarding the Executive Chairman's salary arising from his interim appointment to facilitate the completion of the key tasks of capital raising, the implementation of NAMA and the specified Bank's restructuring plan which is currently being agreed with the EU Commission. It is planned at this stage that senior management structures will be reviewed in mid-2010.
