Business Irish

Friday 19 September 2014

Banks' public interest directors to meet Oireachtas for first time

Maeve Dineen

Published 17/12/2012 | 05:00

  • Share

Public interest directors on the boards of bailed-out banks are to appear before the Oireachtas Finance Committee on Wednesday and Thursday.

  • Share
  • Go To

It will be the first time the government-appointed gatekeepers will have reported to the State since they took up their positions in 2008.

Ciaran Lynch TD, chairman of the finance, public expenditure and reform committee, said they would be quizzed on their roles and responsibilities during three separate sittings next week.

Mr Lynch said: "Among the other issues we will want to address with the public interest directors are: what distinguishes them from the other directors on the banks' boards; how do they invoke and carry out their roles; what are their responsibilities; how have they reported on their role and to whom do they report; what is their contribution to the banks' policies, in particular the function they have in setting the rates of pay and the remuneration policy at their particular bank for management and senior executives."

The decision to haul the directors before the committee comes amid public concern over rising mortgage interest rates, increasing deposit charges and an unwillingness to lend to businesses.

Mr Lynch added: "We will also be keen to consider what scrutiny they apply to the banks' lending policies, such as lending to SMEs and assisting struggling mortgage holders."

Public interest directors were appointed in late 2008 after the banks were guaranteed by the State. Former Finance Minister Brian Lenihan said the non-executive directors would promote the public interest as a way of easing pressure on consumers.

Margaret Hayes and Ray MacSharry, PTSB public interest directors, will appear before the committee at 3pm on Wednesday.

Duties

Tom Considine and Joe Walsh, who sit on the Bank of Ireland board, will attend the committee meeting at 9.30am, while Dick Spring, public interest director at AIB, and Dr Michael Somers, the government-appointed nominee at AIB, will attend at 12.30pm the same day.

Mr Lynch said: "Our meetings provide us with an opportunity to get an overview of the roles, responsibilities, duties and contribution of the public interest directors on the boards of banks which have been bailed out by the State.

"We will also be interested in receiving an outline of how the public interest directors have reported on their roles."

Public interest directors on the boards of bailed-out banks have earned over €1m since being appointed in 2008.

The top paid include Dick Spring (€132,000) in AIB, Tom Considine (€240,000) and Joe Walsh (€217,000) in Bank of Ireland, as well as Margaret Hayes (€207,000) and Ray MacSharry (€183,000) in PTSB.

These fees do not include amounts those directors are being paid this year.

Most of the directors were appointed around the same time of the bank guarantee four years ago by Brian Lenihan.

Irish Independent

Read More

Editors Choice

Also in Business