Dáil Éireann Debate, Thursday - 11 May 2017
75. Deputy Michael McGrath asked the Minister for Finance the position regarding the remuneration cap in place for bank executives; the nature of the cap; his future plans in this area; and if he will make a statement on the matter. [22648/17]
Amharc ar fhreagraThe previous Government put in place a policy which restricts remuneration in the banks in which the State had to inject capital during the financial crisis. This policy has been in place since mid-2011. In brief, remuneration in State supported banks is capped at €500,000 (excluding normal pension entitlements) and no form of remuneration with any variable pay component(s), can be awarded or paid. This policy remains in place and I have no immediate plans to alter it.
However, as I indicated recently, given the State's minority shareholding in Bank of Ireland, should the bank's preferred candidate for CEO be an external individual of the required calibre and with the necessary experience for the role, I would be willing to consider an exception to the pay cap consistent with the terms of the outgoing CEO's remuneration package.
In addition to the pay restrictions that are currently in place as part of Irish Government policy, it is important to acknowledge the wider European regulatory changes to bankers remuneration that have been implemented since the banking crisis. This includes a number of changes to the framework that applies to bonus payments (including salaries and discretionary pension benefits) to staff of relevant institutions. The introduction of the framework in 2014 and enforced by the relevant competent authorities across Europe is designed to ensure that the excessive risk taking culture and short term focus on targets seen prior to 2008 is not repeated.
