Anglo Irish Bank and pay when bust!

Salary levels in IBRC

Since taking office this Government has exerted downward pressure
on the pay levels of senior executives in the Banks.
The salary levels in IBRC are a matter of ongoing concern which
the Minister for Finance will discuss again with the Chairperson
However, the position is that following the banking collapse in
2008 and the nationalising of the bank in 2009 a new management team
was put in place in Anglo Irish Bank by the previous Government and
this team was in situwhen this Government came to office in March
2011.

These contracts in IBRC and other banks were approved by the
previous government and it is ironic that Fianna Fáil are taking
credit for getting this information given the role they played in the banking collapse and the fact that they oversaw the appointment of the management board.

The reality of the situation is that this Government cannot
overturn the contracts approved by the previous Government
Since taking office NO executive in the covered banks have been
appointed with salary in excess of the €500,000
For example the CEO in AIB, Mr. David Duffy salary package is in
line with the Governments new guidelines as is the salary package of
the CEO of PTSB Mr Jeremy Masding.

At a meeting on the 5th April 2012, the Minister for Finance asked
the Chairman of IBRC, Mr Alan Dukes, for the Board of the Bank to
consider a reduction of 15% in senior management salaries.
Mr Dukes subsequently informed the Minister that reductions in pay
levels for individual staff in IBRC, (the entity tasked with winding
down the former Anglo Irish Bank and INBS), had been considered by the Board of the Bank and that a decision had been reached not to
implement cuts at that time.

The bank’s decision not to pursue pay cuts was based on the
difficulty faced by the Bank in retaining and attracting staff, and
the fact that the remuneration packages paid to the new management
team are lower than those historically paid by the Bank.

Fees however for Non-Executive Directors were initially reduced by
20% at the end of 2008 and by a further 15% in July of 2012.
The salary levels in IBRC are a matter of ongoing concern which
the Minister for Finance will discuss again with the Chairperson.
This discussion will be supported/informed by the findings of the
remuneration review, which is currently underway.