Anglo Irish executives’ salaries to be reviewed after pay increases last year

WAGES of top Anglo Irish Bank staff will be reviewed in the coming months, the Department of Finance has confirmed.

The opposition yesterday said it was “stunned” to learn that Finance Minister, Brian Lenihan, approved pay increases to top bosses last July because of the “increased workload” facing the bailed-out bank.

The minister agreed to increase the salaries of the chairman and board members to levels above those recommended by an independent committee set up to examine bankers’ pay at institutions covered by the Government’s guarantee.

The Covered Institutions Remunerations Oversight Committee recommended a salary of €192,000 for the chairman, whose actual salary increased 15% from €218,000 to €250,000.

For non-executive directors, a salary of €38,000 was recommended or €44,000 if they chair a sub committee. But the actual salary increased by 66% to €73,000.

In a letter on the salaries to then executive chairman, Donal O’Connor, who was awarded a salary of €500,000, the department said: “We will review the position in consultation with the board in 2010.”

The revelations were “further evidence that Fianna Fáil is still in hock to the banks,” according to Kieran O’Donnell, Fine Gael’s deputy finance spokesperson.

“Taxpayers are already bailing out Anglo Irish Bank to the tune of €24 billion, money which will vanish down a black hole.

“This follows separate revelations of profligacy at AIB, which still uses chauffeur-driven cars for its senior executives, pays the home telephone bills of some of its executives, and subsidises sports club subscriptions for employees.”

Mr O’Donnell also said the former Irish Nationwide boss, Michael Fingleton, should “show some genuine remorse by handing back his €1 million bonus, in full, to the very taxpayers who are bailing out the institution.”