Noonan unable to reduce banks' 'historic' salaries

Written By Unknown on Minggu, 04 November 2012 | 22.40

A spokesman for Mr Noonan, responding to reports that bailout money has been used to help fund the pensions of former senior bank staff, said pay caps had been applied to two bank chief executives since the Government was formed.

The cap applies to the chief executives of AIB and Permanent TSB who were appointed since March 2011.

However, Mr Noonan is not "legally empowered" to reduce "historic salaries" which are above the Government-imposed pay cap.

The cap applies to banks covered by the Eligible Liabilities Guarantee.

The spokesman said the Department of Finance is committed to a review of remuneration levels in banks that have been supported by the State.

He said the review would ensure bank workers are paid in line with workers with comparable roles in other Irish industries and in line with banking systems in comparable countries.


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