Fury at Lenihan claim bank chief’s salary too low

FINANCE Minister Brian Lenihan’s suggestion that people were not interested in the top job at Bank of Ireland because the pay was too low sparked outrage yesterday.

Defending the appointment of internal candidate Richie Boucher as the bank’s new chief executive, Mr Lenihan drew heavy opposition fire.

Independent Senator Shane Ross attacked the move as “the most disgraceful business appointment in living memory” and suggested BOI desperately needed an outsider to restore morale and confidence in the institution.

Senator Ross also insisted his comments did not reflect on Mr Boucher personally.

Mr Boucher’s predecessor earned e3 million in the year to March 2008, and will earn approaching e2m in the year to this March.

Mr Lenihan said it was not his place to appoint the chief executive — despite e3.5bn of taxpayers’ money being pumped into BOI — and went on to suggest the fact that wages were controlled by a Government committee was putting outside candidates off.

“I understand there was one well-qualified external candidate who did not express an interest in the position, ” Mr Lenihan said during a grilling by the Oireachtas Finance Committee.

“It is hardly surprising when you consider remuneration is subject to a Government committee and that the position of the bank itself has been called into question in some circles.”

Senator Ross said the BOI decision was appalling.

“In my mind this is possibly the most disgraceful appointment in living memory in Irish business. It was of national imperative that Bank of Ireland did not appoint an insider.”

Mr Lenihan, despite suggesting that the pay control at BOI may have put people off the top job, did go on to say that bank salaries were too high and needed to be capped as they were out of line with other sectors.

Labour’s finance spokeswoman Joan Burton said it was “absurd” for the minister to suggest candidates may have been put off because they feared the pay would be too low.

Ms Burton also asked why the appointment had been made before the committee deciding on bank salaries had delivered its report.

Mr Lenihan used his appearance before the committee to warn that income taxes face going up.

“The overall tax burden will have to increase. But the question of how we distribute that and how we ensure that those who can afford to pay most, pay most, is something that has to be structured in a very careful way and in a way that doesn’t do real damage to the economy,” he said.

“We know income tax is the only option in terms of an immediate tax increase.”