DON’T BANK ON THE BONUS
minister rejects ‘wall street-style’ perks bid by fatcat aib bosses
FATCAT bankers’ bonuses at bailed-out AIB have been rejected, it has emerged.
Cheeky bosses are demanding “Wall Street-style” perks to prevent them from losing staff.
But taxpayers who saved the bank’s skin during the crash still own 70% of it and the Finance Minister said the Government won’t be voting for the sky-high pay proposals at AIB’S AGM next week.
Paschal Donohoe added he will be using his majority vote as representative of the taxpayers’ majority shareholding in the bank to vote against the plan to bring back fat cat bonuses.
He said: “I recognise the chairman and board’s right to put this resolution to all the shareholders of AIB given their concerns about management retention and incentivisation in what is an increasingly competitive employment market.
“However, I cannot vote in favour of the resolution being put forward next week.”
The scheme, if introduced, would see huge bonuses restored for executives – possibly outstripping regular salaries and making a mockery of what ordinary workers are being paid.
This is despite the fact the bank probably wouldn’t have survived were it not for the billions pumped into it when it nearly went bust.
In total, taxpayers handed over nearly €21billion to AIB during the financial crisis.
AIB has repaid €7billion in interest and other payments since then, while a 29% stake sale last June pulled in another €3.5billion, leaving the bank still more than €10billion in hock. Bankers’ pay is capped at €500,000 a year, but this does not cover the giant pension contributions some senior bankers get, which allows the banks to get around the pay cap and pay their top dogs closer to €1million a year. Bonuses are also still banned, but there are fears a new review scheme could see their return. Sinn Fein finance spokesman Pearse Doherty said: “I fear today’s announcement marks the beginning of a return to the days of runaway salaries and bonuses.
“Given the behaviour in recent times of the banks, including the ongoing tracker scandal and rip-off interest rates, that is very worrying.
“The bonus culture was a deeply toxic one that should not be allowed re-emerge at any bank owned by the State.”
An AIB spokesman said: “Our ability to retain and attract the skills necessary to maximise the value of the bank for all shareholders is in part dependent on our ability to compete with the remuneration practices of other employers.”