IL&P’s directors see salaries slashed

DIRECTORS at Irish Life & Permanent had their bonuses cut and fees slashed 15% last year.

Executive and non-executive directors were paid e3.82 million in 2008, down from e4.48m a year earlier, according to the bank’s annual report.

Denis Casey, who resigned as chief executive in February, was paid 31% less, receiving e942,000, down from e1.36m in 2007. The lender didn’t pay any bonuses to directors last year.

Mr Casey, Peter Fitzpatrick, finance director, and David Gantly, treasury unit head, resigned after the company said it had engaged in “inappropriate” deposit transactions with Anglo Irish Bank last year.

Finance Minister Brian Lenihan said the transactions may have created a “false impression” about the strength of Anglo Irish.

The bank’s chairman, Gillian Bowler, said in the annual report that she will not excuse these transactions or try to justify them.

“They were wrong and they should not have occurred. The board was not made aware of these transactions and had the board’s permission been sought for them, it would have been declined,” she said.

Ms Bowler said the board’s focus is on ensuring it and the relevant authorities understand the full details of what happened and ensuring this can never happen at the company again.

Ms Bowler, whose pay was cut 10% to e288,000 last year, said Irish Life is making “good progress” on appointing a new chief executive and finance director.

“Looking ahead it is clear that we will continue to face significant challenges through the remainder of this year and into 2010 given the weak economic conditions and difficult credit and investment markets,” she added.

& The bank’s shares rose 6.6% to e1.92 yesterday.