Friday 24 March 2017

Anglo officials 'received substantial bonuses'

Tim Healy

SUBSTANTIAL deferred bonus payments were made to a large number of Anglo Irish Bank officials over the past decade, a court heard yesterday.

Details of the payments emerged as the Commercial Court fixed October 26 next for the hearing of legal actions by Anglo against its former CEO David Drumm over €8.3m in unpaid loans.

Deferred bonuses are a reward system whereby employees only receive the bonus if they meet certain performance criteria over a number of years.

Anglo's current CEO, Mike Aynsley, has confirmed the payments were made to a large number of other Anglo officials and employees over the past decade.

Mr Aynsley also confirmed bonuses in excess of a year's salary were paid to certain officials on termination of their employment.

The court heard yesterday the information arose after Mr Drumm's side had sought sworn answers to questions -- interrogatories -- from Anglo and they had been replied to.

These had asked whether more than 30 persons, including Tiarnan O'Mahony, Anglo's chief operating officer who left its employment in 2004, and John Rowan, Anglo UK CEO, who also left in 2005, were members of Anglo's deferred bonus scheme and whether they had received payments under that scheme for various years up to their departure.

No specific sums were set out in the bank's replies.

But in his response, Mr Aynsley confirmed Mr O'Mahony received a termination/lump sum payment greater than his annual salary, including benefits, to the date of termination of his employment in 2004.

He also confirmed John Rowan received a termination lump sum payment greater than his annual salary, including benefits, to the date of termination of employment.

Transfer

Mr Aynsley also said Anglo's former head of wealth management, Tom Browne, who left the bank in 2007, had received a termination lump sum payment greater than his annual salary, including benefits, to the end of his employment.

The hearing of Anglo's proceedings against Mr Drumm on October 26 will be followed by a second application to set aside the transfer of Mr Drumm's family home at Abbington, Malahide, to his wife.

In the action over the January 2008 loans, Mr Drumm, who resigned in December 2008 as CEO, claims Anglo's demand for immediate repayment is premature and in breach of loan agreements.

He is also counter-claiming his employment was not validly terminated in early 2009 and that the bank owes him €2,620,695.

He is also seeking damages, including for mental distress arising from breach of privacy and the bank's failure to properly protect his confidential information.

Irish Independent

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