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Banking Sector Remuneration

Dáil Éireann Debate, Tuesday - 10 December 2013

Tuesday, 10 December 2013

Ceisteanna (149, 153, 155, 156)

Pearse Doherty

Ceist:

149. Deputy Pearse Doherty asked the Minister for Finance if he will provide in tabular form the number of staff that are receiving a total remuneration package including pension payments, allowances and benefits of between €100,000 and €200,000, between €200,000 and €300,000 , between €300,000 and €400,000, and the number with more than €500,000 at all of the covered banking institutions, the National Treasury Management Agency and National Asset Management Agency. [52982/13]

Amharc ar fhreagra

Pearse Doherty

Ceist:

153. Deputy Pearse Doherty asked the Minister for Finance if he will provide in tabular form, with respect to each of Bank of Ireland, Allied Irish Banks, Permanent TSB, the National Treasury Management Agency and the National Asset Management Agency, the number of staff whose current annual salary falls into bands of €400,000 and above, between €300,000 and €399,999, between €200,000 and €299,999, between €150,000 and €199,000, and between €100,000 and €149,999. [52986/13]

Amharc ar fhreagra

Pearse Doherty

Ceist:

155. Deputy Pearse Doherty asked the Minister for Finance when he will publish the submissions from Bank of Ireland, AIB and PTSB following the Mercer report; and if any substantial contribution from the leadership of the banks on pay and pensions has materialised and to quantify this contribution. [52988/13]

Amharc ar fhreagra

Pearse Doherty

Ceist:

156. Deputy Pearse Doherty asked the Minister for Finance the total final cost of the Mercer Report. [52989/13]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

I propose to take Questions Nos. 149, 153, 155 and 156 together.

As the Deputy will be aware the Review of Remuneration Practices & Frameworks at the Covered Institutions (the "Mercer Report") was published by my Department on 12 March 2013. The following breakdown of total salary and remuneration appears on page 43 of that review.

-

AIB

AIB

BOI

BOI

Number of Staff

Salary

Remuneration

Salary

Remuneration

€300,000-€399,999

7

11

20

34

€400,000-€499,999

3

11

12

15

€500,000 or over

0

0

6

11

Note 1: There are differences in data methodology, timing and exchange rates which account for differences in the data presented here and that shown in responses to parliamentary questions. Data for PTSB and IBRC is not shown for reasons of data protection.

There is a whole host of additional disclosures in the report that give further detailed breakdowns of pay across the banks, in particular the chart on page 42 and the table on page 46 which shows a breakdown by institution by grade of the number of staff, their salary and total remuneration, as follows.

-

AIB

BoI(2),

IBRC

PTSB

Chief Executive

Number of employees

1

1

1

1(4)

Salary

€425,000

€623,000(3)

€500,000

€400,000

Total Remuneration

€488,800

€776,400

€683,600

€460,000

Senior Executives (1)

Number of employees

8

8

7

9

Salary

€327,200

€408,3003

€365,100

€209,300

Total Remuneration

€434,200

€517,400

€535,700

€269,600

Executives

Number of employees

118

103

46

20

Salary

€174,800

€198,700

€184,100

€173,900

Total Remuneration

€230,100

€251,800

€253,900

€220,100

Senior Manager /Manager

Number of employees

2,199

3,326

291

271

Salary

€87,100

€76,800

€87,200

€83,000

Total Remuneration

€108,300

€96,600

€115,600

€109,200

Assistant Manager / Senior Specialist

Number of employees

3,508

2,405

219

554

Salary

€51,500

€49,800

€55,100

€52,700

Total Remuneration

€62,300

€61,200

€61,900

€65,200

Senior Clerical / Specialist

Number of employees

1,584

3,617

237

518

Salary

€44,100

€41,800

€40,400

€43,800

Total Remuneration

€54,600

€49,900

€45,100

€54,900

Clerical

Number of employees

7,034

4,789

200

982

Salary

€32,600

€29,600

€31,300

€30,000

Total Remuneration

€37,300

€35,800

€34,500

€34,400

Notes:

1 . The Leadership Team in AIB.

2 . US employees are not included in the corporate grading structure and are therefore not included in this analysis.

3. Salary figures are net of a voluntary waiver where applicable.

4. 2012 Chief Executive data extracted from responses to recent Parliamentary Questions.

As I stated in earlier replies to Parliamentary Questions on this matter I can confirm that the three State supported banks responded with their individual strategies, designed to achieve the required savings, by the due date of 30 April as requested by the Government in response to the Mercer Report. I was not prescriptive in how this was to be achieved respecting their differing State ownership and investment and paths to profitability. I have reviewed the letters submitted and I am satisfied that the banks will deliver remuneration cost savings of 6% to 10%.

The Bank of Ireland letter focused on changes to the defined benefit pension scheme that will affect all staff who are members of this scheme and as the Deputy will be aware an agreement has now been reached with the IBOA in this regard. The AIB proposal included the closure of the defined benefit scheme to future accrual along with other changes including an increase in working hours which were agreed with the IBOA in July. The ptsb proposal centred on the wind-up of the defined benefit pension scheme for all staff who were members of this scheme.

For clarity senior management in the banks have made the following contributions: in the case of Bank of Ireland the proposed pension changes affect all staff in the BSPF scheme including the Chief Executive. AIB has taken the following specific actions to address remuneration levels: reductions in pay and benefits of higher earners ranging from 7.5% to 15% implemented in the second half of 2012 and it also should be noted that the AIB Leadership Team have all joined the bank since 2008 and receive reduced pension contributions from their predecessors. In the case of ptsb all senior management have been negatively impacted.

The National Treasury Management Agency published a table of salaries by salary band at the end of 2012 on page 35 of its annual report; the table shown below splits the staff into individuals who work for NAMA and the NTMA. It should be noted that staff in the NTMA and NAMA were subject to reductions in pay under the Financial Emergency Measures in the Public Interest ACT 2013.

NTMA Salaries by Salary Band at End 2012

NTMA (ex NAMA)

NAMA

Total

Up to €50,000

92

25

117

€50,001 to €75,000

71

49

120

€75,001 to €100,000

52

58

110

€100,001 to €125,000

21

39

60

€125,001 to €150,000

14

31

45

€150,001 to €175,000

11

9

20

€175,001 to €200,000

4

9

13

€200,001 to €225,000

2

0

2

€225,001 to €250,000

1

1

2

€250,001 to €275,000

3

1

4

€275,001 to €300,000

2

0

2

€300,001 to €325,000

0

0

0

€325,001 to €350,000

2

0

2

€350,001 to €375,000

0

2

2

€375,001 to €400,000

0

0

0

€400,001 to €425,000

1

0

1

€425,001 to €450,000

0

0

0

Total

276

224

500

Notes:

1. The public service pension deduction is applied to NTMA employees.

2. In December 2011 the Minister for Finance requested NTMA employees whose salaries exceeded €200,000 to waive 15 per cent of salary or such amount of salary as exceeds €200,000 if application of the full 15 per cent reduction would bring their salary to below €200,000. Reductions in respect of employees waiving such amounts are reflected in the above table.

The total cost of the Mercer report was €119,000 (ex VAT).

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