In the Kremlin in Moscow, they have what they claim was once the world’s
biggest cannon,
10 ft high, 20 ft long, all decorated in an iron filigree. They’ll tell
you that the canon was fired
once only, and that was after the
death of Catherine the Great. The story goes that Catherine
was cremated, that the ashes were
loaded into the canon, which was turned to face Catherine’s
country of birth, Poland, and the canon was fired to symbolically blast
the ashes back to Poland
in a display of “good riddance”.
The story might be apocryphal, like the story of how the sexually
voracious Catherine met her end
with a stallion (of the horse-burger variety), but now that Anglo
is being liquidated, there will
be some who would like to see its Australian CEO, Mike Aynsley
blasted back to Australia.
Last week, the Government set in train the short term dissolution of Irish Bank Resolution
Last week, the Government set in train the short term dissolution of Irish Bank Resolution
Corporation – “IBRC” which holds the legacy businesses of Anglo Irish
Bank and Irish
Nationwide Building Society – and
as part of the liquidation, some jobs will be lost, and it
seems that Mike was amongst the first to go. He was engaged in the
Autumn of 2009 and has a
contract which expires on his 60
th birthday, 24 th March 2018. Minister for Finance, Michael Noonan
recently was asked “if the Chief Executive Officer of the Irish Bank
Resolution Corporation Mr
Mike Aynsley is employed on a temporary contract; the date on which this
contract was entered
into; the termination date of
this contract and if he will quantify any termination payments provided
for under the contract” and “if the Chief Executive Officer of the Irish
Bank Resolution Corporation
Mr Mike Aynsley is employed on a continuing or permanent contract and if
he will quantify any
termination payments provided for under the contract” and the response
from Minister Noonan was “I
have been advised by IBRC that the CEO, Mike Aynsley, is a permanent
employee of the Bank.
Mr Aynsley’s contract was entered into in August 2009 and was effective
from 7 September 2009.
The normal termination date of the contract is upon the CEO’s 60th
birthday which is 24 March 2018.
Standard termination payments in
lieu of notice exist.”
In 2012, Mike was set to earn a basic salary of €500,000 plus a pension contribution of €125,000 plus
In 2012, Mike was set to earn a basic salary of €500,000 plus a pension contribution of €125,000 plus
benefits of €38,000 – believed to be a car and private health.
How will history judge Mike Aynsley’s performance? Not well. He was always viewed poorly on here
How will history judge Mike Aynsley’s performance? Not well. He was always viewed poorly on here
since that episode in March 2010,
six months after he took up his post, when he declared that Anglo
was staring at €10bn of losses on its loans. Just three weeks later, the
late Brian Lenihan announced
that the figure was €23bn. That episode blotted his copy-book
irreparably on here.
He gave an interview in 2011 with an Australian financial journal where he had a bit of a bitch about
He gave an interview in 2011 with an Australian financial journal where he had a bit of a bitch about
NAMA, which is ironic, given that NAMA is emerging as top dog out of the
liquidation. He claimed
that NAMA was poorly executed.
Minister Noonan refuses to tell us how much it is costing to pursue the Quinns or David Drumm – in
Minister Noonan refuses to tell us how much it is costing to pursue the Quinns or David Drumm – in
fact the Minister refuses to even give us the total spent by IBRC on
legal fees. We accordingly
have no way of knowing if these
matters are economically justified.
IBRC is still notching up huge losses, and Minister Noonan was unable to tell us when IBRC
IBRC is still notching up huge losses, and Minister Noonan was unable to tell us when IBRC
would return to profitability –
both AIB and PTSB have at least both provided estimated dates.
And, as for any assurances that
IBRC would eventually return some of the bailout funds to the
tax-payer. Those assurances were always taken with a pinch of salt on
here and are meaningless
now anyway.
So, what will Mike walk away with? As a permanent employee with three years of completed service,
So, what will Mike walk away with? As a permanent employee with three years of completed service,
he will be entitled to statutory
redundancy of two weeks’ pay for each completed year of service
but pay is capped at €600 per
week, so €3,600. There are some reports that he may be entitled to
12 months compensation which
would be €500,000 plus a €125,000 contribution to his pension
scheme. Other reports suggest a figure of €20,000.
The liquidation of IBRC last week was pretty savage in terms of treatment of the staff, with
The liquidation of IBRC last week was pretty savage in terms of treatment of the staff, with
staff learning on Wednesday evening that their employer was being
liquidated. Whilst many
have been taken back on rolling contracts, the view on here is about 300
will be made redundant,
assuming that most loans are
transferred to NAMA. If a substantial number of loans are acquired
by third parties before the NAMA
deadline of mid-2013, then redundancies might be even higher.
Fianna Fail’s finance spokesperson says he will be raising the subject of senior staff
Fianna Fail’s finance spokesperson says he will be raising the subject of senior staff
compensation when the Dail resumes tomorrow. He is unlikely to be alone.
namawinelake | February 11, 2013 at 4:37 pm | Categories: Banks , Irish economy , NAMA , Politics | URL: http://wp.me/pNlCf-3CL
namawinelake | February 11, 2013 at 4:37 pm | Categories: Banks , Irish economy , NAMA , Politics | URL: http://wp.me/pNlCf-3CL
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