Anglo staff were offered shares deal after bailout
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Management at the failed Anglo Irish Bank who received bonuses late last year were "actively encouraged" to purchase plummeting shares in the bank following the State guarantee, the Sunday Independent can reveal.
The issue of bonuses paid to staff at Anglo Irish is forming part of the current investigations.
It has emerged that at the time of the bonuses being paid to middle management -- which were approved by the bank's former CEO David Drumm before his exit -- the bank offered several schemes to staff.
According to sources, staff at Anglo Irish who were in receipt of bonuses were "encouraged strongly" to use schemes which called on them to buy shares in the troubled bank.
It has emerged that staff were encouraged to partake in a profit-sharing scheme, a save-as-you-earn scheme and a direct share purchase scheme at a time when the price was plummeting.
Bank sources have revealed that the presence of the bank guarantee was used as the major selling point of the scheme.
Some staff felt that the low share price offered an opportunity which has since been neutralised by the nationalisation of the bank.
Many others declined the scheme for fear they could lose their money.
The timing of this revelation is another blow for a bank that is struggling to regain corporate respectability -- and amid news that a takeover is being considered, such revelations just heap more pressure on current chairman Donal O'Connor and his board.
Senior sources at the bank insisted that the manner of the share options scheme was totally appropriate and that nothing inappropriate was done. The bank insisted last night that all the schemes on offer to employees were totally voluntary and properly approved.
A bank spokeswoman told the Sunday Independent: "The schemes were all voluntary, and staff were given a number of ways by the bank to use their money.
"There was an approved profit scheme, a save as you earn scheme and a direct purchase scheme."
Since the beginning of 2008, and throughout last September, the bank suffered a major outflow of money and saw its share price collapse from its peak of €17.50 to less than 30¢.
- DANIEL McCONNELL Chief Reporter
