Investors' warning to Donohoe over pay caps for Irish bankers
Irish bank pay caps and bonus restrictions are now a major worry, a group of investors told Finance Minister Paschal Donohoe, as the Government considers whether to ease pay caps at bailed-out lenders.
Mr Donohoe met a shareholder group brought together by Deutsche Bank in Dublin last month. At the meeting, investors told Mr Donohoe that restrictions on executive pay at AIB and other partly-state-owned lenders were "now a huge concern", even as they recognised the political sensitivity around easing restrictions, according to an internal summary of feedback prepared for the minister.
The documents were released to Bloomberg News through a Freedom of Information Act request. The group of six investors highlighted the decline in AIB's stock after chief executive Bernard Byrne resigned in October, the summary noted.
The Government has hired Korn/Ferry International to review the caps. While that review may recommend easing the constraints, Mr Donohoe told Bloomberg in January he had no plans to do so. Europe also has banker pay restrictions in place.