Aynsley defends his €866k package as representing good value for money

Irish Bank Resolution Corporation boss Mike Aynsley yesterday defended his remuneration package of €866,000, saying he felt it represented value for money.

It also emerged that the holding company in charge of the former Anglo Irish Bank and Irish Nationwide Building Society is in talks that could see it taking on distressed assets, particularly residential mortgages, from other Irish banks.

Mr Aynsley said the IBRC is “well ahead of target” in winding down both Anglo and INBS before 2020, but the final outcome will be market-driven.

He didn’t wish to speculate upon the chances of other lenders’ bad assets — specifically AIB and Permanent TSB — being shifted into the IBRC.

Mr Aynsley said “discussions are currently taking place, over how best torestructure the financial sector and we’re involved in those discussions”.

He added that such a move is “by no means certain” and the IBRC currently doesn’t have the capacity to manage such extra assets.

As part of its wind-down process, the company has reduced its workforce by 880 people to 1,219 in the past 12 months.

The IBRC’s first annual report, issued yesterday, showed Mr Aynsley was paid total remuneration of €866,000 last year — down from the €974,000 he received as head of Anglo in its final year as a standalone entity, in 2010.

His basic salary was in line with the €500,000 bank executive pay cap; with the rest comprising pension, benefits and temporary allowances.

The Department of Finance said the remuneration arrangements for senior IBRC officials were approved by the previous government, but it has been “exerting downward pressure on remuneration packages across all financial institutions owned by the state”.

When asked yesterday if Mr Aynsley thought his high pay represented value for money, he said it did.

“I don’t blame people for feeling hard done by, because the banks didn’t do a very good job over the last number of years. I’m paid very well,” he added.