Business Irish

Sunday 31 August 2014

AIB in talks to create new bonus plan for top executives

'Exploratory' negotiations ongoing with Department of Finance

Tom Molloy

Published 28/01/2014 | 10:52

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The bank said it is investigating the issue and trying to resolve it as quickly as possible
The bank said it is investigating the issue and trying to resolve it as quickly as possible

Allied Irish Banks is talking to the Department of Finance about creating an bonus plan for top executives.

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Chairman David Hodgkinson has had “exploratory talks” with Department of Finance officials on a long-term incentive plan for senior staff, sources told Bloomberg news service.

AIB wants the bonuses to be paid when the bank returns to profit.

Taxpayers were forced to shell out €21bn to save the lender after bank officials made a series of disasterous decisions that destroyed the bank and ushered in the country’s near bankruptcy and a bailout.

Department of Finance and bank officials declined to comment, Bloomberg said.

Chief executive David Duffy is currently paid €500,000 which is in line with a state-imposed salary cap on rescued banks. The cap also places severe limits on bonuses.

A report by consultants Mercer published last March found that Irish senior bank executive salaries are generally paid less than their European peers.

 

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