Rabbitte says end big bank pay-offs

STATE-controlled banks should be prepared to cut excessive severance packages for senior management even if it results in legal challenges, a Government minister has said.

Communications Minister Pat Rabbitte questioned why the banks were paying massive sums to departing senior management when the institutions had clearly under-performed.

He said the bank boards should not pay the full remuneration packages in such instances, even if they were provided for in contracts.