1,262 AIB staff make over €100k

State-controlled AIB has 1,262 members of staff on remuneration packages, including pensions and benefits, of over €100,000 a year.

According to figures released by the bank in answer to a parliamentary question, there are 1,159 members of staff on packages of between €100,000-€200,000; 85 employees on packages of between €200,000-€300,000; eight staff on packages of between €300,000-€400,000 and 10 members of the management team on packages of between €400,000-€500,000.

The subject of pay levels at the pillar banks has become a politically contentious issue since it emerged last week that seven members of IBRC’s management team, including chief executive Mike Aynsley are on packages of over €500k each year.

IBRC is responsible for running down the operations of Anglo Irish Bank and Irish Nationwide, which between them have received roughly €34bn in taxpayers’ funds.

The three pillar banks, AIB, Bank of Ireland and Permanent TSB, have received roughly €30bn in public money.

AIB had 14,501 staff at the end of 2011, but a redundancy programme will see this figure reduced by 2,500 by 2014.

According to AIB, roughly 700 staff earn a base salary in excess of €100,000 with 59% of these earning between €100,000-€125,000 and a total of 91% earn a basic salary of between €100,000-€175,000.

The bank said in a statement is has taken measures over the course of this year to reduce payroll costs. Higher earners have been required to take pay cuts of between 7.5% to 15% and the defined benefit pension scheme has been closed for future service. All members of staff have had a pay freeze since 2008 and this is expected to continue to 2014.

On Thursday it was revealed that 24 members of staff at Bank of Ireland are earning over €400,000 and 193 earning over €150,000. Before the two companies demerged last year, Irish Life & Permanent had 57 members of staff on packages over €150,000 per year.

Tánaiste Eamonn Gilmore has retained the services of the consultancy firm, Mercer, to look into pay levels at the state-controlled banks.

Bank of Ireland issued an un-guaranteed €1bn three-year covered bond during the week. AIB and PTSB are both struggling with legacy assets. Both banks are in discussions with the Troika about hiving off their sizeable tracker mortgage books to a special purpose vehicle.

But if the European Commission gives the go-ahead for this, then a crucial issue will be at what price they are moved. If it is done at current market value, rather than book value, that could create a hole in the capital bases for the banks.

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