Sunday 21 October 2018

Bankers' bonuses at bailed-out lenders back on the agenda

Minister for Finance, Paschal Donohoe
Minister for Finance, Paschal Donohoe
Donal O'Donovan

Donal O'Donovan

The Government is set to establish a review to look at the vexed question of allowing a return of bankers' bonuses at bailed out lenders for the first time since the crash.

Any review is likely to also take in the notional €500,000 a year salary cap in place at rescued  lenders.

Management and boards at AIB and Bank of Ireland have been pushing hard for looser pay rules - which are on the agenda for annual general meetings of both lenders' shareholders in the coming days.

The State's majority stake means Finance Minister Paschal Donohoe has the final say on whether AIB can pay share based bonuses, and he is expected to veto that plan at the bank's AGM next Wednesday.

At Bank of Ireland, the State's 14pc stake isn’t enough to block bonuses, and the Government is expected to abstain in relation it its pay plans.

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