Dáil Éireann Debate, Wednesday - 21 November 2012
58. Deputy Stephen S. Donnelly asked the Minister for Finance if any correspondence has been entered into with Allied Irish Banks, Bank of Ireland and any other banks in which the State has a stake, calling on senior staff to waive a portion of their salaries; and if he will make a statement on the matter. [51724/12]
Amharc ar fhreagraThe Deputy will be aware that I wrote to the Chairman of Irish Bank Resolution Corporation (IBRC) in April this year asking that the board of the bank consider a reduction of 15% in senior management salaries. He advised me that the board were of the opinion that it would not recommend implementing reductions at this time citing difficulties faced by the bank in retaining and attracting staff, and the fact that the remuneration packages paid to the new management team were lower than those historically paid by the institution. I have indicated that I do not accept this to be the end of my discussions with the bank on this matter.
In relation to the three other Covered Banks, no correspondence has been entered into on this matter. I should point out, however, that all of the Covered Institutions (including IBRC) have taken self help steps to varying degrees, to reduce remuneration costs such as changes to pay, benefits and pensions across their respective organisations. In particular, AIB has applied reductions in pay and benefits of higher earners ranging from 7.5% to 15%.
Each of the institutions is participating in the review of remuneration practices at the Covered Institutions being progressed by my Department.
