Anglo hands over 'modest' pay rises to 70 employees
Anglo Irish, the nationalised lender expected to post huge losses next week, has admitted giving 70 staff "modest'' pay hikes because their roles at the bank have changed.
The bank last night refused to comment on the scale of the rises, but said staff were also being rewarded for getting extra educational qualifications over the last year. The disclosure of the pay awards was made on RTE Prime Time last night.
The rises went to 20 staff in UK, 40 in Ireland and 10 in the US. The bank, which will announce losses of over €13bn next week, said only these 70 employees out of a total staff of 1,240 had qualified for the rise.
"Increases were awarded where roles and responsibilities have changed since the completion of the voluntary redundancy programme,'' said the bank. This is a reference to a redundancy programme which was completed last year by new chief Mike Aynsley.
"The increases were also awarded in situations where qualifications of direct relevance to the individual's day-to-day job were completed in the past 12 months''. The bank emphasised that prior to the bank's nationalisation in January 2009 much of the pay of Anglo staff came from bonuses.
, but this was no longer the case.
``This means that average take-home pay across the bank has been substantially reduced''.
Since 2008, Anglo has reduced its staff numbers to 1,240 from 1,800 as a result of the redundancy programme and the sale of its Vienna-based subsidiary.
In the past year, the bank said it had has also trimmed costs generally.
The issue of pay and bonuses is an extremely sensitive one for banks at this time, particularly for Anglo, which has already received €4bn from the taxpayer. Another €6bn may yet be needed to stabilise the bank.