Executive pay high on IBOA agenda

The contentious issue of executive pay will come up at an Irish Bank Officials Association (IBOA) conference today, which could see the union call for industrial action.

The banks are expected to report back to the Minister for Finance Michael Noonan over the next two weeks with proposals to reduce their overall cost base.

The proposals are expected to include measures to cut payroll costs and pension entitlements.

The news that Bank of Ireland chief executive, Richie Boucher, received a total pay packet of €843,000 in 2012, caused a furore at the bank’s AGM on Wednesday. Moreover, executive pay at the banks is expected to feature prominently at today’s IBOA conference.

On Wednesday evening, Taoiseach Enda Kenny told the Dáil he expects substantial pay cuts from senior bank executives over the next few weeks.

A Mercer Report commissioned by the Government and released in March found that 6,400 staff were on salaries of €100,000-plus at the three domestic banks.

The issue of banker’s pay caused a storm last October when it emerged through a parliamentary question that seven executives at the now defunct IBRC were earning over €500k.