Irish

Wednesday 23 July 2014

AIB still silent on reduced pensions' take-up

John Mulligan

Published 10/02/2014|02:30

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AIB chief executive David Duffy
AIB chief executive David Duffy

STATE-owned AIB still won't reveal how many of its senior executives have agreed to take a voluntary pension reduction.

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Fianna Fail finance spokesman Michael McGrath has been told by Finance Minister Michael Noonan that the AIB board had made more than 30 requests to former executives to voluntarily cut their pension entitlement.

That figure is unchanged from last year, when AIB chairman David Hodgkinson told shareholders at the bank's annual general meeting that the board had written to the executives requesting they surrender part of their pensions.

He said at the time that legal requirements prevented him from revealing if any of those executives had agreed to a cut.

A spokeswoman for AIB said yesterday that that remains the position.

Mr Noonan said last week that "quite a few" responses had been received on foot of the letters to the former AIB bankers and that the process remains "ongoing".

Earlier last year, he also refused to say how much in pension cuts had been achieved from the AIB executives.

PRESSURE

AIB – headed by chief executive David Duffy – first wrote to former executives in 2012 seeking reductions to their pension entitlements.

Former AIB chief executive Eugene Sheehy had a multi-million euro pension pot, with the bank boss entitled to around €300,000 a year after leaving the bailed-out institution.

But Mr Sheehy bowed to public pressure in late 2012 and agreed to take a significant cut to his pension entitlement.

That amounted to a reduction of about €50,000, bringing it to €250,000 a year.

Taoiseach Enda Kenny said that year that former AIB managers had a "moral responsibility" to reduce their retirement payments.

Irish Independent

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