News

Saturday 26 July 2014

1,200 bailed-out bank employees paid over €100k

Daniel McConnell

Published 30/06/2014|02:30

  • Share
David Duffy
David Duffy

MORE than 1,200 bankers at the bailed out AIB and Permanent TSB are being paid in excess of €100,000, the Irish Independent can reveal.

  • Share
  • Go To

At AIB, 18 senior bankers are still being paid €300,000 or more while seven, including CEO David Duffy, are being paid more than €400,000.

In 2013, Mr Duffy was paid a salary of €425,000 and a pension payment of €64,000 for a total remuneration of €489,000.

AIB has received more than €20.8bn in taxpayer support since the crash in 2008, while PTSB has received €4bn from the State's coffers.

The figures, obtained by the Irish Independent, show that AIB currently has 1,033 employees who are earning in excess of €100,000 a year.

It can be revealed that 942 bankers at AIB are earning between €100,000 and €200,000 a year, while a further 73 are paid between €200,000 and €300,000.

At PTSB, 148 bankers are paid between €100,000 and €200,000 while 14 are paid salaries of up to €300,000.

The figures show that four senior executives are being paid between €300,000 and €400,000 while three employees including CEO Jeremy Masding are being paid in excess of €400,000 a year.

His and Mr Duffy's salaries are "in line" with the Government's pay cap of €500,000 for the bailed-out banks.

Finance Minister Michael Noonan, whose department released the figures, has repeatedly been criticised by opposition finance spokesmen Fianna Fail's Michael McGrath and Sinn Fein's Pearse Doherty for failing to rein in such high salaries.

Redundancy

A comment was sought from Mr Noonan last night but none was forthcoming.

A spokesperson for AIB last night said the number of people earning more than €100,000 in total remuneration has reduced by about 30pc since the end of 2011.

A large part of this was achieved through the banks' significant voluntary redundancy scheme.

The spokeswoman added that the bank is targeting a total cost reduction of €350m in annual cost savings in 2014, relative to 2012. Some 80pc of that cost was achieved by the end of last year.

In 2012, at AIB and EBS, 804 employees earned basic salaries of between €100,000 and €199,000; 45 employees earn ed between €200,000 and €299,000; and 12 employees earned more than €300,000.

At Permanent TSB a total of 52 people earned basic salaries of between €100,000 and €199,000; seven employees earned between €200,000 and €299,000; and two employees earned more than €300,000.

The revelations come despite AIB's hiking of bank charges and increased variable mortgage interest rates in an attempt to return to profitability. It has also closed down rural bank branches.

And it plugged a hole in its pension scheme in 2012 by transferring €1.1bn of loan assets to its pension pot to fund an early retirement scheme.

Irish Independent

Read More

Classifieds

CarsIreland

Independent Shopping.ie

Meet, chat and connect with
singles in your area

Independent Shopping.ie

Meet Singles Now

Findajob

Apps

Now available on

Editor's Choice

Also in Irish News