Government to remove cap on bankers' pay

Maximum €500,000 salary cap for bank CEOs will be removed

It follows the decision by Minister for Finance Paschal Donohoe to sell the remaining State stake in AIB.

Finance Minister Paschal Donohoe has announced that the cap on banker’s pay at AIB and PTSB, which limited salaries to a maximum of €500,000 a year, will be removed to allow them to compete better for talent.

The cap was initially put in place in the wake of the financial crisis and the bailout of the three banks AIB, PTSB, and Bank of Ireland. The chief executives of these banks saw their salaries capped with bonuses above €20,000 attracting a super-tax of 87%.