Bailed-out banks’ directors paid over agreed levels

BANK directors in bailed- out institutions earned far in excess of what was recommended, figures compiled by the Irish Examiner show.

A report by the Covered Institution Remuneration Oversight Committee (CIROC) in February 2009 outlined new levels of reduced pay for bankers in exchange for the Government’s €440 billion guarantee.

But an analysis by the Irish Examiner shows 37 of 44 non-executive members on five of the banks’ boards were paid more last year than recommended in the report. It also emerged that the banks’ chief executives, whose salaries were capped at €500,000, are receiving benefits including cars and club memberships ranging from €33,000 to €66,000.

Eight of the 10 non-executive directors who sat on the Bank of Ireland board, including two Government -appointed public interest directors, earned in excess of the €55,000 recommended in the CIROC report. A spokesperson for the bank argued that fees were reduced by 25% last year.

At AIB, six of the 11 non- executive directors who sat on the board last year earned more than the €55,000 recommended – with three earning treble that figure.

Fees at Irish Nationwide last year amounted to €403,000 compared with €246,000 the previous year.

At Irish Life and Permanent, nine out of 10 non- executive directors last year earned more than the €44,000 CIROC advised. The bank said basic pay was reduced by 25% to €56,350 in September and payments significantly reduced, even if they are above recommended levels.

At the EBS, not one of the 11 non-executive directors earned within the recommended €29,000 and most got around €37,000.

A bank spokesperson said 2009 fees were decided at the annual meeting before CIROC came into effect and could not be changed, but fees agreed for this year comply with the recommendations.