Noonan has notasked banks to cut big earners’ pay

Cuts to the salaries of the highest earners in bailed-out banks have not been requested by the finance minister, a spokesperson confirmed.

More than 1,600 employees across four banks receiving state assistance earn salaries in excess of €100,000.

But Michael Noonan has not made any representations to the bank boards to reduce these wages because it would be “outside his remit”.

Figures released in recent days reveal that 600 Bank of Ireland employees earn over €100,000, with 43 earning over €200,000 and 18 over €300,000.

The State has a 15% stake in the bank, having pumped €4.2bn of taxpayers’ money into it.

The figures were released in response to a parliamentary question last week from Fianna Fáil’s finance spokesman, Michael McGrath, who said bankers are “running the show” and the minister has taken a “hands-off” approach to the issue.

Figures released to him show that:

n804 employees at AIB earned between €100,000 and €199,000, 45 earned between €200,000 and €299,000 and 12 earned in excess of €300,000;

n52 employees at Permanent TSB earned between €100,000 and €199,000, seven earned between €200,000 and €299,000 and two earned in excess of €300,000;

n119 employees at IBRC (formerly Anglo Irish Bank and Irish Nationwide) earned between €100,000 and €199,000, 16 earned between €200,000 and €299,000 and eight earned in excess of €300,000.

Mr McGrath said the salaries paid to bank employees should be “brought into line with the new economic reality that ordinary people are having to face”.

The Cork South Central TD said: “It is incredible that four years after the banking collapse there are over 1,600 people in the covered institutions who are still earning a basic salary of over €100,000.”

He said it is further evidence that Mr Noonan is taking a “hands-off approach” in relation to the banks. “When you consider the issue of lending to small and medium businesses, the mortgage arrears problem and now this, it seems the minister is unwilling to hold the banks to account,” he said.

Mr McGrath has also branded as a “smokescreen” a review on executive pay and severance arrangements in banks promised by the minister more than a year ago.