Departing Bank of Ireland executives got paid a million each
BANK of Ireland (BoI) paid two departing executives more than €1m each over the past two years, including severance and redundancy payments.
Details of the payments – one each in 2019 and 2018 – are included in so-called ‘Pillar 3’ disclosures published by the bank, which provide far greater detail than traditional financial reports.
The two executives were the only people paid more than €1m by BoI. Neither was a director of the bank – if they had been, their remuneration would be included in the annual report alongside CEO Francesca McDonagh’s pay in 2019 of €958,000.
The bank declined to name the highly paid leavers. Former chief financial officer Andrew Keating left BoI in October and subsequently joined CRH. His €551,000 pay in 2019 is included in the annual report, because he was a director of the bank.
The two next most senior executives to leave in the period were former head of retail banking Liam McLoughlin, tipped as a potential CEO before leaving BoI in 2018, and Steve Collier, a former National Australia Bank (NAB) executive hired in February 2018 to lead BoI’s €1.4bn technology overhaul before his surprise departure 18 months later.
The Pillar 3 disclosure says: “One individual earned total remuneration of €1 million or more in 2018, including sal- ary, car allowance, employer pension contributions, pay in lieu of notice, accrued and unused annual leave, statutory redundancy and voluntary parting payments.”
“One individual earned total remuneration of €1 million or more in 2019, including salary, employer pension contributions, pay in lieu of notice, accrued and unused annual leave, and severance.”
Bank of Ireland reported a fall in profits for 2019 yesterday. Underlying profits reduced to €758m, from €935m in 2018.
The bank said the environment in which it is operating “has changed materially and is more challenging,” citing lower-for-longer interest rates.
The bank revised its targeted return on tangible equity (RoTE) for next year to around 8pc from more than 10pc. Management insisted the 10pc return remains a target over the longer term.
‘The bank’s operating environment is now more challenging’