Dáil Éireann Debate, Thursday - 13 April 2017
77. Deputy Pearse Doherty asked the Minister for Finance his views on a situation in which a bank (details supplied) is seeking a dispensation to pay the new chief executive officer more than the €500,000 salary cap and or build in a bonus or long term incentive scheme into their contract. [19001/17]
Amharc ar fhreagra78. Deputy Pearse Doherty asked the Minister for Finance when he expects a bank (details supplied) to appoint a new chief executive officer; and if he will make a statement on the matter. [19002/17]
Amharc ar fhreagra79. Deputy Pearse Doherty asked the Minister for Finance if a bank (details supplied) is engaging a recruitment agency or other external parties to mange the process of appointing a new chief executive officer; and if he will make a statement on the matter. [19003/17]
Amharc ar fhreagra80. Deputy Pearse Doherty asked the Minister for Finance if he will use his influence as a shareholder in the appointment of a new chief executive officer at a bank (details supplied); and if he will make a statement on the matter. [19004/17]
Amharc ar fhreagraI propose to take Questions Nos. 77 to 80, inclusive, together.
As the Deputy is aware, Bank of Ireland is an independent listed company on the Irish and London Stock Exchanges and must abide by stock exchange rules and best practice in relation to the dissemination of price sensitive information. In the bank's recent Stock Exchange announcement the current Group CEO confirmed his intention to step down from his role. It also stated that a succession planning process is now underway. In relation to the Deputy's questions on the process being followed including likely timing of an appointment and the engagement of external parties, BOI has confirmed that a further announcement will be made to the Stock Exchange at the appropriate time. For the benefit of the Deputy, the Stock Exchange announcement already issued by BOI can be found at the following link:
https://investorrelations.bankofireland.com//wp-content/assets/CEO-intention-to-step-down-24.03.2017.pdf
In addition, BOI has provided details of the selection process for all appointments to the Board on page 146 of its 2016 Annual Report which can be found at the following link:
https://investorrelations.bankofireland.com//wp-content/assets/BOI-Annual-Report-2016.pdf
On the matter of remuneration, given the State's minority shareholding in the bank, and the terms of the outgoing CEO's remuneration package, should the bank's preferred candidate be an external individual of the required calibre and with the necessary experience for the role, I am willing to consider an exception to the pay cap. However as no proposal has been presented to me, it would not be appropriate for me to comment further on the matter at this point in time.
In relation to using my influence as a shareholder in the appointment, I would highlight for the Deputy that it is the responsibility solely of the Board of the bank to run the process and to ensure that the best candidate is chosen in the best interests of all shareholders. Following the appointment, I will be entitled to vote, as a 14% minority shareholder, on the election and subsequent re-election of the CEO to the Board as part of the bank's Annual General Meeting process, as is the case with all other directors of the Bank.
