Banking Sector Remuneration

Dáil Éireann Debate, Thursday - 8 March 2018

Thursday, 8 March 2018

Ceisteanna (70)

Michael McGrath

Ceist:

70. Deputy Michael McGrath asked the Minister for Finance the position in terms of the relationship frameworks with each of the State supported banks when it comes to executive and management pay limits and bonuses including share based bonuses for management and executives; if he must be consulted if one of the banks wishes to change the limit or the ban on bonuses; if he has the power to grant or reject the removal of pay limits or bonuses; and if he will make a statement on the matter. [11535/18]

Freagraí scríofa

Minister for Finance

As the deputy is aware, AIB agreed to comply with certain covenants in relation to remuneration as part of its recapitalisation agreements with the State. The relationship framework agreement which was subsequently put in place requires the bank to comply with the remuneration covenants contained in the State agreements and details how related consent requests should be submitted and dealt with.

The deputy will be aware that the policy on banking remuneration of successive Government’s  since the crisis has remained the same. There are extensive restrictions in place, but in summary they restrict total remuneration to €500,000 (ex a standard pension contribution) while no bonuses are permitted.

Any bonus or incentive scheme, be it cash or share based, approved by the Minister for Finance would still be subject to the excess bank remuneration charge and the power to change that rests with Dail Eireann.

Finally, I have no current plans to make any changes to our remuneration restrictions.