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Enda Kenny: Cap on bankers' pay will not be lifted in search for new AIB boss


AIB's David Duffy

AIB's David Duffy

AIB's David Duffy

TAOISEACH Enda Kenny has said the cap on bankers' pay will not be lifted to recruit a new chief for AIB, even though he said government-imposed bankers pay caps are a ''constraint.''

''The Government will always act in the interest of the Irish taxpayer,'' Mr Kenny said, on the margins of the World Economic Forum.

"The Government have absolutely no intention of changing the capping level.''

Speaking at summit in Davos on Thursday, Mr Kenny suggested the €500,000 pay cap was a constraint as the Government sought to find a replacement for AIB boss David Duffy, who has said he will leave for a new job inside the next few months.

"The process is in place for a replacement for him now. You know, the wage caps are a constraint. And obviously, coming from where we've come from, that's been a difficulty," the Taoiseach told Bloomberg Television.

Mr Duffy is leaving AIB to join National Australia Bank's troubled UK wing, which shares many problems with AIB. Explaining his decision, he said the time was now right for a new chief executive to lead AIB through the next stage of its recovery.

A date for his departure has not been set, but Finance Minister Michael Noonan has said Mr Duffy will stay on for about six months until a successor is found. Mr Noonan - who recently appointed multinational investment banking firm Goldman Sachs to advise on the bank's sale - has consulted AIB chairman Richard Pym on the search. Mr Noonan has suggested the State could eventually recoup all the AIB bailout cash.




Online Editors