Central Bank mulls staff pay hikes and bonuses

The Central Bank is considering pay increases and bonuses for senior staff and all employees, as well as other ‘reward models’, as part of an internal review.

The pay review comes ahead of the construction of the central bank’s new Dublin headquarters, expected to commence this year, which could cost up to €140m.

Potential bonuses and salary hikes for senior officials who already exceed the public sector salary cap will form part of the assessment of the central bank and its 1,400 staff.

Central Bank officials stressed the pay review would form part of a larger review by the bank of internal structures, career paths, and processes. This is being led by an internal committee and is likely to be added to by “external expertise”, the bank said. In a statement to the Irish Examiner, it added: “The Central Bank has commenced an organisation review which is focused on the future organisation design and structure necessary to deliver its strategy and mandate in an effective, flexible and efficient manner.

“The Central Bank has been subject to the various public sector pay adjustments in recent years and the review will also include an examination of potential reward models for the future.”

A spokeswoman confirmed that the review of ‘reward models’ would include salaries, bonuses, and other reward models for employees from the “top to the bottom”.

Central Bank figures show salaries paid to staff include Governor Patrick Honohan (€213,000), financial regulator Cyril Roux (€310,000), and deputy governor Stefan Gerlach (€250,000). The amounts exceed the Government’s €200,000 public sector pay cap.

The bank spokeswoman said the review had begun in recent weeks and will be finished in 2015, the year staff will begin moving into the new quayside HQ.

“The review itself is not expected to be completed before 2015 due to the scope involved with the implementation of any agreed recommendations to follow on a phased basis.”

Finance Minister Michael Noonan will have no say over whether the bank’s staff will get pay increases.

His spokesman said that, under the Central Bank Act 1942, the employment of staff at the Central Bank and their terms and conditions were matters for the Central Bank Commission.