Kenny: Other bankers may walk away with lucrative packages
It also emerged that the Department of Finance never saw Colm Doherty’s contract at a time when AIB was effectively being supported by the state.
The Taoiseach said legal advice was being sought on what are believed to be a handful of banking bosses who could be forced out, but with handsome payments.
But opposition parties demanded the Government ensure the reversal of the €3m in salary and severance bonuses awarded to AIB’s former director.
However, Mr Kenny said: “This money was paid to Mr Doherty last year before the general election ever occurred… there may well be other senior banking executives who have legal entitlements to similar kinds of deals. I do not know.”
AIB’s soon-to-be-published annual report is expected to confirm Mr Doherty received a €432,000 salary, a year’s notice payment of €707,000 when his contract was terminated, as well as a payment of €2 million in lieu of a pension contribution.
Further reports suggested that in addition he may get more than €300,000 for a pension.
Mr Kenny said the Department of Finance was looking at the break-up of bankers’ remuneration packages, similar to a “bonus culture” being tackled in other EU states.
However, Mr Kenny admitted that the Department of Finance in late 2009 was not aware of the AIB director’s contract. This was surprising as then Finance Minister Brian Lenihan had initially opposed his appointment, said Mr Kenny.
“Certainly, as a person who did not want Mr Doherty appointed in the first place, he [the minister] should have made it clear that he should have been apprised of each and every issue regarding the internal appointment of Mr Doherty by AIB,” said Mr Kenny.
Meanwhile, Justice Minister Alan Shatter told a conference of gardaí that senior bankers may not get their lucrative packages.
Mr Shatter, a lawyer by profession, said employment contracts were “two-way” and that, in addition to an employer’s obligations, an employee is contracted to carry out a certain function.
“If you don’t carry out that function competently, if the organisation or company you are working for is rendered incapable of fulfilling its objectives, essentially is put into liquidation or is only surviving on the support of monies coming from elsewhere, I think there is a serious issue as to whether you are in such fundamental breach of contract as to be not entitled to any reward in circumstances in which you are requested to leave early.
