Obscene pay rises in banks must be stopped, says Ross

Ministers must step in to halt “obscene” pay increases at bailed-out banks, opposition TDs have insisted.

The call follows revelations in Bank of Ireland’s annual report that its chief executive Richie Boucher took home a package worth €843,000 last year.

The bank’s chairman Archie Kane was paid €394,000 for his role — plus another €59,000 for a “consultancy arrangement” with the organisation.

Independent TD Shane Ross led demands for Finance Minister Micheal Noonan to use his influence in the loss-making organisation to halt the increases in pay.

“It is an extraordinary revelation at a time when Bank of Ireland is losing €1.5bn-€2bn per annum.

“And the week after the finance minister appealed to all the State-backed banks to cut pay by 6%-10%, to make this announcement now is really quite extraordinary.

“It’s a €12,000-a-year increase, it’s a pension top-up when Bank of Ireland is actually attacking their own workers’ pensions. It’s fairly staggering.

“The Government is a shareholder in Bank of Ireland. The Government has been extremely reluctant to interfere for some reason in the Bank of Ireland affairs.

“The Government could go to the annual general meeting in April and cast its vote, specifically, against this absolutely obscene remuneration, and it can specifically vote against Archie Kane, the new governor — he gets €394,000 per annum for a part-time job — that’s €8,000 per week. And he has also got a €59,000 consultancy arrangement — what on earth is that for?” Mr Ross told RTÉ.

The independent TD said a figure of €100,000 a year would be “perfectly enough” for the chiefs of such a loss-making bank to be paid.

The bank’s annual report showed that Mr Boucher has a salary of €690,000, pension contributions of €186,000, and benefits-in-kind, like a car allowance, of €34,000.

The package totalled €910,000, but Mr Boucher waived €67,000.

Mr Kane also receives “an accommodation, utilities and car allowance of €37,000 per annum”, the report states.

Standing in for the Taoiseach at Leaders’ Questions, Agriculture Minister Simon Coveney ruled out legislation to cut the pensions for retired chiefs at bailed-out banks enjoying large pay-outs.