AIB's €2m payment in lieu of pension a farce
Published 20/04/2011 | 05:00
When the Covered Institutions Remuneration Oversight Committee reported to the Finance Minister in February 2009 it stated that "pension arrangements for senior executives in banks should be at least broadly similar to those applicable to the generality of the staff of the institution".
This report also recognised that the top management of banks made little, or no, contribution to their pensions and recommended an appropriate balance between personal employee contributions and the employer contributions.
Why did the Department of Finance tolerate an agreement nine months later, in November 2009, to facilitate the payment to Colm Doherty, the former managing director of AIB, of €2m in lieu of a contribution to his pension?