Noonan to reject AIB pay-cap bid
Published 26/09/2011 | 05:00
AIB attempts to lift the €500,000 salary cap for top executives are unlikely to succeed, Finance Minister Michael Noonan indicated last night.
Speaking in Washington, he confirmed that the bank had made a formal request for the salary cap to be lifted.
AIB is currently looking to hire a new chief executive but Mr Noonan said he was happy with the pay cap.
"We have a policy on pay and we have a cap of €500,000 on pay for bankers like the new chief executive of AIB. I think that it's a reasonable cap," he said.
"It is two-and-a-half times what the Taoiseach gets. Now banking is very important but running a country is very important as well."
He confirmed that AIB had made a submission to be allowed to negotiate a salary higher than €500,000.
"They'd want to make a very impressive case before we'll change, but we will examine it," the minister said.
AIB is understood to be considering Brendan McDonagh, a former head of HSBC's North American operations; and David Duffy, formerly of Dutch bank ING for the role.