843k euro for bailed-out bank chief
Published 19/03/2013 | 17:36
One of Ireland's bailed-out banks paid its chief 843,000 euro last year.
A week after the Government warned banks to slash pay bills by up to 10%, Bank of Ireland revealed chief executive Richie Boucher earned a salary of 690,000 euro in 2012. He was paid an additional 34,000 euro in other remuneration costs, which includes car costs and benefits in kind, and a further 186,000 euro in pension contributions.
According to the bank's annual report, the chief executive waived 67,000 euro of his total pay last year. No bonuses were awarded for 2012.
"While the economic environment has improved somewhat in recent months, it still remains difficult and the group continues to face many challenges," Mr Boucher said in the annual report.
"However, we are starting to see some of the benefits flowing from the focus we have had over the past four years on our strategic objectives aimed at enhancing our core franchises and rebuilding profitability within a restructured, robust balance sheet."
Mr Boucher was appointed before the current Government took office and his salary above the 500,000 euro cap was approved as an exemption.
The bank's report revealed that Andrew Keating, who was appointed an executive director in February last year, was paid a salary of 358,000 euro. Like Mr Boucher, he also received additional remuneration payments and pension contributions - to the sums of 28,000 and 32,000 euro respectively.
The bank's total remuneration bill for Bank of Ireland directors for 2012 was more than 2.5 million euro.
Last week, Finance Minister Michael Noonan directed Ireland's four bailed-out banks - Bank of Ireland, Allied Irish Banks, Permanent TSB and the defunct Anglo rebranded to the Irish Bank Resolution Corporation - to reduce remuneration by targeting payroll and pension benefits.
He made the order following the publication of a study into pay at Irish banks by consultants Mercer, which revealed total remuneration for employees at the former Anglo actually rose by 1% over the last four years.