Business Irish

Saturday 16 December 2017

Some top lenders 'find ways around cap'

Donal O'Donovan

Donal O'Donovan

Government policy is to 'cap' the salary paid for running any of the bailed-out banks at €500,000 a year.

AIB boss David Duffy signed up to a €500,000-per-year salary last year, but experience at the other lenders shows banks have found ways around the cap.

Earlier this year, Bank of Ireland's annual report revealed the true pay deal for CEO Richie Boucher was €831,000 last year, despite the cap.

That includes gross salary of €623,000 plus pension entitlements of €174,000 and other entitlements of €34,000 -- even though the bank said his "core salary" was €500,000.

The head of the former Anglo Irish Bank made even more.

Australian Mike Aynsley, who runs Irish Bank Resolution Corporation (formerly Anglo) earned a salary of €500,000, plus €133,000 in pension and €341,000 in other benefits -- including the cost of travel back and forth from Australia.

Supporters of the cap say raising salaries for bankers in state-backed institutions would be intolerable as long as ordinary people were paying to fund bank rescues.

Opponents say the cap makes it hard to hire the best people to run banks, just when it matters most.

Irish Independent

Promoted Links

Business Newsletter

Read the leading stories from the world of Business.

Promoted Links

Also in Business