Bosses of three state agencies to forgo €850k bonuses

THE chief executives of three key state agencies — including National Treasury Management Agency (NTMA) head John Corrigan — are to give-up bonuses worth as much as €850,000.

Mr Corrigan is to forgo as much as €392,000 in bonus payments for 2010.

National Asset Management Agency (NAMA) chief Brendan McDonagh is waiving a possible bonus of €258,000. National Development Finance Agency (NDFA) head Brian Murphy is relinquishing a potential bonus of €198,000.

None of the three have ever before waived the payment of their bonuses.

A spokesman for the NTMA, NAMA and the NDFA confirmed the chiefs waived the bonus payments.

Other senior manager at the NTMA had also decided to forgo their entitlements to bonus payments for 2010.

The spokesman said the decision not to accept the payments was taken “some time ago” by the individuals concerned in the context of the broader economic challenges facing the country.

“The decision to confirm the position now was made following misleading and incorrect reporting on the matter in recent weeks,” the spokesman added.

The bonus payment for the head of the NTMA John Corrigan can be up to 80% of the salary for the post. In 2010 his salary was €490,000, indicating a maximum bonus payment of €392,000.

The head of NAMA, Brendan McDonagh, can earn a bonus payment of up to 60% of salary. His salary was €430,000. This could result in a maximum bonus payment of €258,000.

The head of the NDFA Brian Murphy’s contract provides for a bonus payment of up to 60% of salary. His salary was €330,000. This means he could earn a maximum bonus of €198,000.

The full details of the remuneration of the three chief executives will be published in the 2010 annual reports for the NTMA, the NDFA and NAMA, which are expected to be released in months.

It is understood that bonus payments are subject to performance against a number of targets established at the outset of the year following consultation with the NTMA Advisory Committee.

In the case of the CEOs of NDFA and NAMA, the performance-related bonus is determined by the NTMA, on the advice of the advisory committee, which has a remuneration sub-committee. The chairman of NAMA is a member of the Remuneration Committee.