Perks take IL&P bankers over the €500,000 pay cap
TWO senior executives at Irish Life & Permanent enjoyed earnings above the €500,000 banking pay cap last year, as car allowances and other perks bulked up their salaries.
The €538,000 package of IL&P boss Kevin Murphy is revealed in the bancassurer's 2010 annual report, which also shows that finance chief David McCarthy enjoyed total remuneration of €514,000.
Both men's salaries were in line with the pay cap on state-supported banks, with Mr Murphy's on the button at €500,000 and Mr McCarthy following closely behind with €497,000.
Mr Murphy's salary was supplemented with a €34,000 benefit in kind -- believed to relate to a company car and health premiums -- plus €4,000 in "other" benefits, linked to permanent health insurance.
Mr McCarthy's benefit in kind came in at €31,000, while he also booked €4,000 in "other" remuneration.
A spokesman for the bancassurer stressed that the banking pay cap related solely to salary levels and that IL&P had adjusted its executive packages considerably in order to meet the guidelines.
Referring to Mr Murphy, he said: "In 2008, Kevin's total remuneration was €959,000. This was reduced to €744,000 in 2009 and reduced further to €538,000 in 2010."
Mr McCarthy's package, however, was marginally up in 2010 as his salary rose €14,000 and his "benefit in kind" increased by €4,000.
The IL&P spokesman also confirmed that shareholders were given a "say on pay" at last year's annual general meeting and would be given the same opportunity at this year's gathering in May.
The IL&P duo are far from the best-paid bankers amongst state-supported institutions.
Bank of Ireland chief Richie Boucher has attracted repeated criticism for his €623,000 package, which included a €500,000 salary and a €123,000 "pension cash allowance" in 2009.
A spokeswoman for the bank declined to comment on his 2010 package, which will be revealed in the bank's soon-to-be-published annual report. However, it is unlikely to have risen as Bank of Ireland has a pay freeze in place.
The latest annual report shows that IL&P's outgoing chair Gillian Bowler was paid €200,000 last year, unchanged from 2009, and below the €218,000 recommended by the Government's bank pay review.
Salaries for non-executive directors ranged from €19,000 to Sinead Kinney to €84,000 to Breffni Byrne. Across the board, total remuneration to non-executive directors fell from €812,000 to €722,000.
IL&P's annual report comes a week after the bancassurer reported losses of €197m for 2010, as impairments at its Permanent TSB bank offset a 57pc rise in operating earnings at its core life-insurance business.