Tuesday 28 March 2017

No bonuses for bosses in €2bn Irish Life float

Nick Webb

Nick Webb

TOP executives at Irish Life and Permanent will not receive major bonuses or windfalls when the company's €2bn-valued life-assurance arm is floated in October.

"There are no proposals to give bonuses on the sale of the business," according to the Department of Finance.

Irish Life & Permanent hired consultancy firm Towers Watson to conduct a review of executive pay including the payment of bonuses. The report is expected shortly.

Last week it emerged that Deutsche Bank has been appointed as an adviser to the company ahead of the planned IPO, which is being overseen by the NTMA. However, it is understood that a trade sale is also being considered.

The Irish insurance sector is facing major changes with Liberty Mutual recently buying Quinn Life with Anglo Irish Bank, while state health insurer VHI may also be up for sale. It is thought that a group of major US and European insurance firms, as well as private equity players, are monitoring the process.

A number of key Irish Life & Permanent executives are thought to be eager to move to the Irish Life side of the business, which is being sold off to fill a €4bn hole in the coffers. The Permanent TSB banking arm is likely to be merged with AIB or a new entity after the float.

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