Kehoe pours cold water on AIB desire for salary cap removal

Government Chief Whip Paul Kehoe has said that the Finance Minister would think long and hard before allowing a bank to breach the salary cap for their chief executives.

It follows comments from AIB executive chairman David Hodgkinson today, who spoke of the difficulties the limit could pose in the recruitment of a suitable candidate to replace Colm Doherty.

The Irish Bank Officials Association said that it beggars belief that the bank, which is 93% State-owned, could be considering paying the new CEO more than €500,000.

Mr Kehoe says the decision would ultimately be up to the Finance Minister Michael Noonan, but he thinks AIB should be able to hire someone on the agreed limit.

"I believe €500,000 is an extremely generous salary and I do believe there is people out there that would be well able to do the job for €500,000," he said.

"They mightn't be in Ireland - they might be across the water some place."