THE chief executives of the National Treasury Management Agency (NTMA) and NAMA have agreed to take a 15pc pay cut and waive their bonuses for 2011, it emerged last night.
The action was triggered by a pre-Christmas letter from Finance Minister Michael Noonan asking for pay cuts across the NTMA's most senior management. NAMA is part of the NTMA, so the request encompasses the loans agency's top executives as well.
A spokesman for the NTMA last night confirmed that chief John Corrigan and NAMA boss Brendan McDonagh had already replied to Mr Noonan and accepted the cuts.
Both have also agreed to waive any bonuses for 2011, when Mr Corrigan would have been eligible for a performance-related bonus of up to 80pc of salary and Mr McDonagh could have gotten up to 60pc.
After the cuts, Mr Corrigan will earn €416,500 next year, while Mr McDonagh will be paid €365,000.
The slimmed-down packages leave the duo well below the €500,000-plus packages enjoyed by chief executives of bailed-out banks -- but well above the €200,000 pay cap for the next boss of the Finance Department.
A group of up to 15 other senior managers across the NTMA and NAMA have also been notified of the minister's request for their pay to be cut; their response is expected imminently.
A spokesman for the Finance Department last night declined to comment on the packages of any particular executives, but said the department would "welcome" any voluntary pay cuts accepted by executives paid from the public purse.
Public expenditure minister Brendan Howlin has previously praised public and civil servants who agreed to pay cuts. Mr Corrigan and Mr McDonagh's agreement to renounce their 2011 bonuses marks the second year in a row the duo won't get any performance-related pay.
In 2010, their bonuses were set and approved by the then Government, before the bosses voluntarily waived them.
This year's early renouncing of the bonuses means the Government will be spared the political quagmire of considering whether to approve bonuses for the duo or not.
A "dialogue" about the role of bonuses across the wider staff at both NAMA and the NTMA -- who shared a €2m bonus pot last year -- is ongoing with the Finance Department.
The recent Geoghegan Report into NAMA's operations suggested there was a case for using bonuses -- or "long-term incentive pay" -- to maximise the returns achieved by the loans agency.