€2m fees for State-hired directors of banks

Wed, Nov 14, 2012, 00:00

Twelve public interest directors appointed by Government to State-supported banks since 2008 have shared almost €2 million in fees, according to figures supplied by the Minister for Finance, Michael Noonan.

In response to a series of parliamentary questions from Sinn Féin finance spokesman Pearse Doherty, Mr Noonan disclosed that the chairman of IBRC (formerly Anglo Irish Bank) Alan Dukes – who also has an executive role – has been the highest paid. He was paid €102,000 in 2009; €127,000 in 2010 and €150,000 in 2011.

Annual fee

However Mr Dukes’s annual fee is much lower than the €212,500 agreed by the board in July. He has said that he wanted to take a fee of €112,500 this year, €100,000 below that set by the board.

Frank Daly, the former chair of the Revenue Commissioners who chaired the bank’s board before Mr Dukes, was paid €98,000 in 2009. He subsequently became chair of the National Assets Management Agency.

The former EU Commissioner Ray MacSharry was paid €181,000 in fees between 2009 and 2011 for being the public interest director at Irish Life and Permanent TSB. His fellow public interest director Margaret Hayes was paid fees of €205,000.

Former tánaiste Dick Spring has been a public interest director at AIB since 2009. Between 2009 and 2011 he was paid €132,000 in fees. The other public interest director, former Dublin Airport Authority chief executive Declan Collier was paid €140,000 in fees over the same period.

In the EBS building society, Anthony Spollen was paid fees of €81,000 in that three-year period with Ann Riordan receiving €82,000.

Former minister for agriculture Joe Walsh got €238,000 between 2009 and 2011 for being a public interest director at Bank of Ireland. The other, Tom Considine, was paid €259,000.

Questions

Mr Doherty also submitted questions in relation to pay levels in Irish Life and Permanent Group and at TSB.

Mr Noonan said the chief executive Kevin Murphy received total remuneration of €586,000 in 2011, which included his salary of €500,000 and other unspecified remuneration at €86,000.

Mr Doherty pointed out in a statement last night that this was in breach of the Government’s own cap of €500,000 for executive pay in banks which have availed of the State guarantee or in which the State has taken a significant stake.

Nr Noonan also revealed that 38 employees at Irish life received basic salaries in excess of €150,000, with two receiving €400,000 or more.

The chief executive of Permanent TSB Jeremy Masding, who was appointed earlier this year, was paid a basic salary of €400,000 with a further €60,000 per year being contributed to a defined contribution pension scheme.

Public directors: Summary of fees

Total for three years between 2009 and 2011

Alan Dukes, chair of IBRC (executive): €379,000

Ray MacSharry, Irish Life: €181,000

Margaret Hayes, Irish Life: €205,000

Dick Spring, AIB: €132,000

Declan Collier, AIB: €140,000

Anthony Spollen, EBS: €81,000

Ann Riordan, EBS: €82,000.

Joe Walsh, B of I: €238,000

Tom Considine, B of I: €259,000