AIB to pay €40m in bonuses to staff this year

STRUGGLING Allied Irish Bank is set to dole out almost €40 million in bonuses this month despite being on the brink of another bailout from the Government.

According to a number of reports last night, the bank is set to pay all staff contractually entitled to a deferred 2008 bonus in their December pay packet, at an estimated cost of €40m.

The payout is a result of trader John Foy’s successful legal action against the bank, which resulted in it having to pay him a deferred bonus of €161,000. As many as 90 employees in AIB’s capital markets division have issued similar legal proceedings against the bank in the courts.