November 8, 2012
Sinn Féin TD and Finance Spokesperson Pearse Doherty has accused the board of IBRC, formerly Anglo Irish Bank and Irish Nationwide, of giving the two fingers to the Irish taxpayer. His comments came after the Minister for Finance revealed in a parliamentary response to Deputy Doherty that he had asked the board to consider a reduction of 15% in senior management salaries but that the board had refused.
Deputy Doherty said:
“The reply given to me by the Finance Minister today reveals just how much of a bubble the board of IBRC and senior management at the bank are in. In response to a query of whether the Minister had asked the board to consider a 15% reduction in salaries of senior management, Minister Noonan said he had and that the board had said no. The excuse given by the board is that the staff remuneration is at lower levels than staff at the bank would have received in the past and that to keep the staff, these massive salaries must be paid.
“This is a two fingered gesture to the taxpayer from senior management and executive board members in IBRC. It is outrageous that the Minister has not followed this up and demanded a reduction, considering the Irish taxpayer is the sole owner of this bank. It is even more outrageous that the board would turn it down.
“The Minister also revealed to me today that there are 30 staff in IBRC in receipt of salaries in excess of €200,000. Six of them receive salaries over €400,000. The Minister and the government need to immediately intervene in the level of salaries given out at this bank and remind these senior executives exactly who they are working for.” ENDS
DÁIL QUESTION
NO 47
To ask the Minister for Finance if he has contacted the Irish Bank Resolution Corporation requesting staff whose annual salary is in excess of €200,000 to waive 15% of their salary or such amount in excess of €200,000 whichever is the lesser, and if he has, the date on which he first made this contact; the number of staff whose annual salaries were in excess of €200,000 at that date; the number of staff who acquiesced to the request for the waiver; the number of staff who refused the request for the waiver and the number of staff who have not responded to the request for the waiver..
- Pearse Doherty.
* For WRITTEN answer on Wednesday, 7th November, 2012.
Ref No: 48799/12
REPLY
Minister for Finance ( Mr Noonan) : At a meeting on the 5th April 2012, I asked the Chairman of IBRC, Mr Alan Dukes, if the Board of the Bank would consider a reduction of 15% in senior management salaries. Mr Dukes subsequently informed me that reductions in pay levels for individual staff in IBRC, (the entity tasked with winding down the former Anglo Irish Bank and INBS), had been considered by the Board of the Bank and that a decision had been reached not to implement cuts at that time.
I am informed by the Bank that the decision not to pursue pay cuts was based on the difficulty faced by the Bank in retaining and attracting staff, and the fact that the remuneration packages paid to the new management team are lower than those historically paid by the Bank.
Fees however for Non-Executive Directors were initially reduced by 20% at the end of 2008 and by a further 15% in July of 2012.
DÁIL QUESTION
NO 43
To ask the Minister for Finance to provide in tabular form, with respect to the Irish Bank Resolution Corporation, the number of the staff whose annual salary at 31 December 2011 fell in the following bands, €400,000 and above, €300,000 to €399,999, €200,000 to €299,999 and €150,000 to €199,999..
- Pearse Doherty.
* For WRITTEN answer on Wednesday, 7th November, 2012.
Ref No: 48795/12
REPLY
Minister for Finance ( Mr Noonan) : I have been advised by the Bank of the following information with regard to staff’s annual salary as at 31st December 2011;
Deputy Doherty said:
“The reply given to me by the Finance Minister today reveals just how much of a bubble the board of IBRC and senior management at the bank are in. In response to a query of whether the Minister had asked the board to consider a 15% reduction in salaries of senior management, Minister Noonan said he had and that the board had said no. The excuse given by the board is that the staff remuneration is at lower levels than staff at the bank would have received in the past and that to keep the staff, these massive salaries must be paid.
“This is a two fingered gesture to the taxpayer from senior management and executive board members in IBRC. It is outrageous that the Minister has not followed this up and demanded a reduction, considering the Irish taxpayer is the sole owner of this bank. It is even more outrageous that the board would turn it down.
“The Minister also revealed to me today that there are 30 staff in IBRC in receipt of salaries in excess of €200,000. Six of them receive salaries over €400,000. The Minister and the government need to immediately intervene in the level of salaries given out at this bank and remind these senior executives exactly who they are working for.” ENDS
DÁIL QUESTION
NO 47
To ask the Minister for Finance if he has contacted the Irish Bank Resolution Corporation requesting staff whose annual salary is in excess of €200,000 to waive 15% of their salary or such amount in excess of €200,000 whichever is the lesser, and if he has, the date on which he first made this contact; the number of staff whose annual salaries were in excess of €200,000 at that date; the number of staff who acquiesced to the request for the waiver; the number of staff who refused the request for the waiver and the number of staff who have not responded to the request for the waiver..
- Pearse Doherty.
* For WRITTEN answer on Wednesday, 7th November, 2012.
Ref No: 48799/12
REPLY
Minister for Finance ( Mr Noonan) : At a meeting on the 5th April 2012, I asked the Chairman of IBRC, Mr Alan Dukes, if the Board of the Bank would consider a reduction of 15% in senior management salaries. Mr Dukes subsequently informed me that reductions in pay levels for individual staff in IBRC, (the entity tasked with winding down the former Anglo Irish Bank and INBS), had been considered by the Board of the Bank and that a decision had been reached not to implement cuts at that time.
I am informed by the Bank that the decision not to pursue pay cuts was based on the difficulty faced by the Bank in retaining and attracting staff, and the fact that the remuneration packages paid to the new management team are lower than those historically paid by the Bank.
Fees however for Non-Executive Directors were initially reduced by 20% at the end of 2008 and by a further 15% in July of 2012.
DÁIL QUESTION
NO 43
To ask the Minister for Finance to provide in tabular form, with respect to the Irish Bank Resolution Corporation, the number of the staff whose annual salary at 31 December 2011 fell in the following bands, €400,000 and above, €300,000 to €399,999, €200,000 to €299,999 and €150,000 to €199,999..
- Pearse Doherty.
* For WRITTEN answer on Wednesday, 7th November, 2012.
Ref No: 48795/12
REPLY
Minister for Finance ( Mr Noonan) : I have been advised by the Bank of the following information with regard to staff’s annual salary as at 31st December 2011;
(Salary only)
Staff No’s # as at 31 Dec 2011
Ireland, UK and US
€0 - €99,000 1060
€100,000 -
€149,000 108
€150,000 -
€199,000 23
€200,000 -
€299,000 21
€300,000 -
€399,000 3
€400,000 -
€499,000 5
€500,000+ 1
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