Kenny firm on bank CEO salaries

THE GOVERNMENT would need to see “an exceptionally compelling case’’ for any bank to breach the €500,000 pay ceiling for chief executives, Taoiseach Enda Kenny said.

He said there had been no “formal request’’ from AIB to the Government for any particular level of remuneration.

“I have rarely seen people so frustrated as they are over the carry-on of some bankers over the years,’’ he added.

He said that Minister for Finance Michael Noonan had requested an overall survey of the remuneration packages for bankers.

It was fair to say, said Mr Kenny, that those who worked in banks at the lower level had taken the brunt of the stick for those who exemplified greed and rank bad behaviour in their reckless lending practices.

Banks had thrown money at people “left, right and centre’’ and it was equally fair to say that people borrowed money they knew they could not pay back.

“The more bankers at the top level lent, the more they received in bonuses,’’ he said.

“That is why the Government wants to put a stop to the practice.’’

The Taoiseach was replying to Sinn Féin leader Gerry Adams, who said he understood that, in recent days, AIB had made a request to the Department of Finance contending that the €500,000 cap should be breached and that salaries should be increased as the bank was experiencing difficulties recruiting for the top jobs.

Fine Gael, he said, had poured cold water on Fianna Fáil when it introduced the cap in government, as had Labour.

“It is inconceivable that the Taoiseach would countenance such an increase at a time of considerable distress and when people are scandalised by the pensions of some of the bankers,’’ Mr Adams said.

“Will the Taoiseach rule out firmly any increase in the salaries of the chief executives?’’

Mr Kenny said he was sure the Minister for Finance and himself would want to see what exactly the banks were talking about when they said they needed to breach the ceiling.

“From my experience, I believe there are competent Irish people around the world, with very considerable experience in banking, who would be delighted to do the job for €500,000 or less,’’ he also said.

He said Mr Adams could take it that the Government would report to him as soon as the results of the review of the remuneration packages were made to the Minister for Finance.