Noonan says ‘sorry guys’ to AIB bonus request

Minister for Finance Michael Noonan has ruled out reintroducing bonuses for top bankers until performance improves. Allied Irish Banks has approached the Government about setting up an incentive plan to retain top executives before it starts selling the lender.

AIB declined to comment.

“The answer is sorry guys, much better performance required before we’ll even consider” bonuses, Mr Noonan told Bloomberg today. “If any executive wants to leave AIB, I’ll shake his hand and wish him fair passage as he leaves.”

“While we’re holding 99 per cent of AIB, there’s no point in having those discussions with me,” Mr Noonan said. “It makes no sense, and it’s not a demand that I’m prepared to deal with.”

After the exploratory discussions between the bank and Department of Finance officials were reported, TDs rushed to urge Noonan to resist the reintroduction of bonuses.

“The number one priority for AIB is to get itself off the backs of the Irish public after it was foisted on them when it collapsed,” said Ciaran Lynch, a Labour TD and chairman of the Oireachtas finance committee.

Mr Noonan also said Bank of England Governor Mark Carney told him at Davos last week that Ulster Bank's position in Ireland won't change as part of a wider review to conclude next month. Ulster Bank will continue to operate in Ireland and there's "no news to come" as result of the review, Mr Noonan said.(-Bloomberg)