Dáil Éireann Debate, Tuesday - 26 June 2012
172 Deputy Billy Timmins asked the Minister for Finance the number of persons that worked in the former Anglo Irish Bank and Irish Nationwide Building Society, before the rationalisation and name change to Irish Bank Resolution Corporation; the number that currently work in IBRC; the changes if any that have been made and the pay and conditions of the employees in IBRC; and if he will make a statement on the matter. [30656/12]
Amharc ar fhreagraAs the Deputy is aware the Board of the bank is responsible for the day to day operation of the bank including the management of staff members and structures generally. I have been informed by the bank that since nationalisation there has been a c. 65% reduction in total headcount (excluding NAMA servicing unit) in the combined Anglo Irish Bank and INBS organisations from close to 2,250 in January 2009 to 785 at the end of May 2012. IBRC also employs 271 staff in its NAMA servicing unit (of which 170 are front line NAMA loan servicing staff and the remainder, allocated support staff). As part of this reduction the bank has informed me that there has been an extensive restructuring and streamlining of the management structures in IBRC.
In terms of remuneration, the bank has informed me that a 20% reduction was applied to the salaries of executive management in the former Anglo Irish Bank immediately post-nationalisation. Impacted individuals have since left the Bank, and the entire executive of the Bank has been renewed. Since nationalisation in January 2009 the Bank has pursued a policy of exerting downward pressure on headcount and remuneration packages generally across the Bank.
The bank has further informed me that the total remuneration paid to the top 50 individuals in the organisation in 2009 has reduced by c.15% to date. In addition, total staff costs in the organisation have reduced by 48% from the end of the financial year 2008 to the end of 2011 and this includes 6 months of additional cost resulting from the merger with INBS in 2011.
The Board of the bank has also considered further reductions in pay levels for individual staff and informed me that a decision has been reached not to implement cuts at this time. It should also be noted that IBRC does not operate a performance-based incentive plan to retain these individuals throughout the remaining wind-down period of the entity. The decision not to pursue further pay cuts is, I am informed, based on the need to retain staff which is integral the successful delivery of the Bank's asset recovery programme. The Board has also informed me that the position in relation to remuneration generally will be kept under review.
