Noonan: State can't cut Richie Boucher's pay
THE Government cannot cut the Bank of Ireland boss's €840,000 salary, Finance Minister Michael Noonan has said.
Mr Noonan said the Government had capped bank salaries at €500,000 but arrangements for the Bank of Ireland CEO, Richie Boucher, had been entered into prior to him becoming minister.
"We have 14pc of Bank of Ireland. It is, by and large, a privately owned bank and in privately owned banks shareholders tend to reward key staff,'' Mr Noonan told the Dail.
The minister said the saving targets set in the Mercer report on pay at bailed-out banks had been exceeded and there had been significant salary cuts.
Sinn Fein's Pearse Doherty said the total package paid to Mr Boucher was "obscene" and the bank had only been saved because of the taxpayers' sacrifices.
"Despite all the hardship endured by ordinary people . . . this bank continues to show contempt for the Irish people,'' he said.
Mr Doherty said Taoiseach Enda Kenny told the Dail last April he expected a substantial contribution from the leadership of the banks on pay and pensions.
"A year later, we know that not one cent of the basic pay of top bankers has been reduced,'' Mr Doherty said.
Mr Boucher is due to appear before the Finance Committee today where mortgage arrears are being discussed.