Belfast Telegraph

Friday 25 April 2014

Report into pay at bailed-out Irish institutions delayed

Publication of a report into the controversial pay of up to €663,000 (£548,800) a year for executives at bailed-out banks in the Republic has been delayed until the end of this month.

The Irish government hired outside consultants Mercer to undertake a review of pay at all levels in the bailed-out banks.

The review - which looked at pay scales at all levels in the so-called "covered banks" that benefit from explicit state support, including First Trust parent Allied Irish Banks (AIB), Bank of Ireland and Irish Bank Resolution Corporation (the former Anglo Irish Bank) - is now complete .

A final draft report is now being prepared by officials at the Republic's Department of Finance in conjunction with Mercer, and the main findings are due to be published at the end of this month.

The official €500,000 (£413,900) cap on annual pay for top Irish bankers is currently widely breached, mainly because individual contracts predate the cap.

The chief executive of IBRC, Mike Aynsley, receives €663,000 per year from the Irish state, in a mix of salary, allowances and pension.

The timing of the Mercer review was driven in part because senior figures in the banking industry had complained to the Republic's government that salary caps were barriers to hiring talent.

But any easing of the current pay cap will provoke an angry public reaction among taxpayers still carrying the €64bn (£52.7bn) tab for reckless lenders.