Dáil Éireann Debate, Thursday - 5 December 2013
67. Deputy Terence Flanagan asked the Minister for Finance his plans to reduce the top-ups paid to senior bank executives who have breached Government pay policy; and if he will make a statement on the matter. [52366/13]
Amharc ar fhreagraThe perception that senior bank executives are receiving top-ups in pay is an erroneous one. The payment of performance bonuses to employees at the covered institutions is prohibited except in certain circumstances such as on foot of a court order. The Review of Remuneration Practices and Frameworks at the covered institutions for the period 2008 to 2012 revealed that no pay increases have been provided to the generality of the employees and bonuses are no longer payable at the covered institutions. The Review can be found at http://www.finance.gov.ie/documents/publications/reports/2013/mercerreportfin.pdf
In 2009, the then Government decided to impose a base salary cap of €500,000. Present Government policy on remuneration - which goes beyond previous policy - dictates that no employee at any of the covered institutions (unless specifically approved) may receive annual remuneration (excluding pension contributions) of more than €500,000.
It should also be noted, that employees of the banks are not public sector employees, therefore, the Government pay policy does not affect their individual employment contracts.
