Dept of Finance tells Paschal Donohoe AIB bonus 'super-tax' and pay caps must be addressed

'We need to normalise relationship between State and AIB' as State shareholding reduces towards zero

Minister for Finance Paschal Donohoe told department officials he wants  to 'exit from AIB entirely'. (Picture: PA)

Finance Minister Paschal Donohoe was told a discussion on pay caps and the “super-tax” on bonuses at AIB is likely to rear its head as the state’s share in the bank approaches zero.

In a submission on the latest sale of the Government stake in the bank, officials said there was no legal requirement to change the compensation cap as long as the state remained a shareholder. It said a further disposal of shares could take place before a conversation on pay and perks was necessary with AIB.