B of I puts £11m into share schemes for employees

Bank of Ireland gave €14 million (£11 million) to employee share schemes in the year to March last, the group's annual report shows. The monies are included in staff costs.

The shares were issued to trustees on behalf of employees as part of the bank's profit-sharing arrangements.

The end March 2000 cost of €14 million represents 3.5 per cent of the basic salaries of eligible employees and was up from €9 million (£7.1 million) for the previous year or 2.5 per cent of salaries. Each year the board can set aside an amount out of group profits before tax for allocation to the scheme - the amount is based on growth in real earnings per share and a comparison of this growth with that of a peer group of Irish and UK financial institutions.

Total remuneration of executive directors at the Bank of Ireland group including performance bonuses, company cars and pension contributions fell to €1,256,000 in the year to end March from €1,481,000. However the average cost to the bank of each executive director increased to €523,333 from €493,667, because the average number of directors fell over the period. No breakdown is given of the individual salary levels.

Total executive directors salaries were down to €804,000 from €957,000 but bonus payments rose to €321,000 from €311,000. Non-executive directors cost €259,000, up from €245,000. In addition, non-executive director Ms Mary Redmond was paid professional fees as a solicitor by the group of €57,138 for the year to end March, down from €104,119.

The annual report shows that the bank's auditors received €1.6 million for audit work in the year to end March, up from €1.5 million. They received €3.8 million for non-audit work, unchanged on the previous year. On Deposit Interest Retention Tax liabilities arising out of the Public Accounts Committee DIRT inquiry, the annual report states that no reliable estimate can be made at this stage of the amount of additional DIRT "due but unpaid as a result of documentation or other deficiencies". The Revenue Commissioners is currently auditing DIRT compliance by all financial institutions in Ireland over the period April 6th 1986 to April 5th 1999. According to the Bank of Ireland annual report "the nature and extent of the uncertainties surrounding the outcome of this process, including questions about the interpretation and application of the law, make it impossible for the directors to make a reliable estimate of any eventual DIRT liability, and any associated interest and penalties which will assessed on the group".

The report sets out how the standard rate of tax on trading profits will fall in coming years as the corporation tax rate is reduced to 12.5 per cent: 24 per cent in 2000, 20 per cent for 2001, 16 per cent for 2002 and 12.5 per cent for 2003 and subsequent years.