Business Irish

Thursday 14 December 2017

Lane won't be donating portion of Central Bank salary to State

Central Bank Governor Professor Philip Lane. Photo: Collins
Central Bank Governor Professor Philip Lane. Photo: Collins
Colm Kelpie

Colm Kelpie

Central Bank Governor Professor Philip Lane will not be following in his predecessor's footsteps and gifting a portion of his salary to the State, the Irish Independent has learned.

Professor Lane, who took up the post in November, is entitled to a gross salary of €254,048.

The former Trinity College Dublin academic is entitled to the same pay packet as Professor Patrick Honohan, but the latter had been voluntarily returning a portion of his salary.

Prof Honohan's time at the helm of the regulator was dominated by the economic crisis, budget austerity and the bailout years.

A Central Bank spokeswoman said the Governor's salary had been determined by the Central Bank Commission.

She added that Governor Lane would not be gifting part of his pay, but declined to comment further.

"This [Governor Lane's gross salary] is in line with the salary that applied to his predecessor," she said. "Governor Lane is accepting the agreed salary. He's not gifting a portion."

The Central Bank's annual report for 2014 showed Prof Honohan had gifted €57,000 of his salary to Finance Minister Michael Noonan.

The gross salary of the Central Bank Governor has been falling fractionally each year.

In 2011, it was €276,324, dropping to €265,186 in 2013 and subsequently to €254,048.

The Governor, however, is not the best-paid official in the Central Bank. Deputy Governor and Financial Regulator Cyril Roux was entitled to a gross salary of €310,000 in 2014. Former deputy governor Stefan Gerlach earned €230,350.

Meanwhile, the Dame Street institution has been named 'Central Bank of the Year' by the publications 'Central Banking Journal' and centralbanking.com. The judging panel, made up of members of 'Central Banking' editorial staff and former senior central bankers sitting on the publication's advisory board, highlighted the introduction of the bank's tough mortgage deposit rules.

Noting the impact on property prices, the judges said the move demonstrated the Central Bank of Ireland's "resolve to tackle sensitive issues in an independent manner".

Governor Lane said the award was an honour. "The bank remains vigilant and willing to take macro prudential measures to fulfil its mandate of 'protecting stability and protecting consumers'," he said.

"Now that we have the appropriate toolkit in place to protect financial stability, I believe the willingness of the Central Bank to intervene in a structural and proportionate manner is evident and clearly demonstrates the Bank has undergone a transformation since the financial crisis."

'Central Banking Journal' also said Governor Lane supported the continuing efforts of the European Central Bank's governing council to deploy non-standard measures in fulfilling its price stability mandate.

He added: "Developments in emerging economies should be monitored closely, given their importance in determining global output and their growing impact on the global financial system."

Irish Independent

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