Govt seeks salary cap for bankers

The Government is seeking a salary cap of €500,000 on bankers’ salaries.

The Minister for Finance Brian Lenihan has written to financial institutions covered by the State bank guarantee scheme, indicating that any deviation from this should take place only in very exceptional circumstances.

It comes after the publication of a report by the Covered Institutions Remuneration Oversight Committee which recommends reductions in prevailing base salary, bonus and pension levels for chief executives, chairs and ordinary board members.

The €500,000 sum is lower than recommended by the committee.