Friday 24 November 2017

Former AIB chief's €10.5m pension cost

annual payments to the former chief executive officer of AIB, Mr Eugene Sheehy".

Mr Noonan replied: "AIB informs me that for an employee retiring at age 60 with 40 years pensionable service and an annual pension of €529,000, AIB estimates that the capital value accummulated in a fund to provide this annual figure would be approximately €10.5m."

Earlier this month, AIB's chief executive, David Duffy, confirmed that some of the €1bn of assets transferred from its balance sheet to its pension fund is helping to pay the "super-pensions" of former senior managers.

The novel scheme to rescue the pension fund was designed to help slim down the bank by funding an early- retirement scheme.

However, it has now emerged the transfer is also helping to pay the huge pensions of executives who left the bank years ago, including those in charge during the banking crisis.

Last week, former AIB chief executive Mr Sheehy bowed to public pressure and took a major cut to his pension.

Taoiseach Enda Kenny added to the pressure by saying AIB's former managers had a "moral responsibility" to reduce their retirement payments.

AIB's current chief David Duffy is also writing to former executives, asking them to give up some of their huge pension entitlements.

Mr Doherty was also told that Kevin Murphy, CEO of Irish Life, gets a total package of €586,000.

And a total of 21 senior executives in Irish Life and PTSB receive pay packages over €200,000. Figures released by Sinn Fein last night show that 37 employees at IL&P earned between €150,000 and €200,000 last year. Two recieved in excess of €400,000.

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