The gap between the best-paid jobs and entry-level posts has widened in Ireland in recent years by more than 5%, marking one of the largest increases in Europe, according to a leading business consultancy.

Junior finance minister Michael D’Arcy has insisted the €500,000 annual banking pay cap should be retained, despite increasing pressure from institutions to relax the rules.

The pay cap of €500,00 for the top bosses at AIB and Permanent TSB, in which the Government owns large stakes, is likely to be retained but other incentives for more junior executives are on the cards.

CATERING group Compass is understood to have approached the former chief executive of plasterboard maker BPB to take over as chief executive, it was reported yesterday.