Spring's salary for AIB board may double to €65,000
Published 29/05/2014 | 02:30
Former Labour leader Dick Spring could be paid twice his current salary for sitting on the board of Allied Irish Banks.
Non-executive directors at the bank were paid a basic fee of €27,375 last year but their basic fee will increase to €65,000 under new plans.
Mr Spring was appointed to the failed bank's board after the Government was forced to seize control of the lender and later inject more than €20bn into the bank. He represents the public's interests on the board.
Now the bank wants to double the basic pay for non-executive directors who sit on the bank's board but have no other formal connection with the lender.
Shareholders are being asked to approve the pay hike at a meeting next month. The State owns 99pc of the bank but the Department of Finance said last night that it had not decided how to vote. The bank's annual report says the new plan had been drawn up in consultation with the department.
While directors' basic salary will soar, the bank says executives' total payments will fall by about 9pc from last year because directors will get lower fees for attending meetings. Mr Spring, for example, earned €77,000 last year compared to €66,000 in 2012.
Under the revised structure, all non-executive directors except chairman David Hodgkinson whose flat fee is unchanged, will see their meeting attendance fees replaced with a lower committee membership flat fee and a reduction in other fees.
"The effect of the change is a further reduction, following a voluntary 25pc reduction in 2009," a spokeswoman said.
Directors were given extra payments for attending meetings and for performing extra duties such as serving as chairman of a board committee or as a member of the board of a subsidiary company.
Chief executive David Duffy said recently that the bank would return to profitability this year. Its annual report, released earlier this year, showed losses more than halved in 2013.