Bank of Ireland to exclude most managers from pay rise
Chief executive to outline five-year targets in June along with plan to cut costs further
Bank of Ireland staff at the lower end of three management pay grades, including branch managers, may receive a pay increase if they receive top ratings in performance evaluations.
Bank of Ireland, which is seeking to cut 15 per cent of its middle and senior management positions, has told most employees among these grades that they will not receive a pay increase this year, as front-line staff enjoy a 3 per cent hike.
The Irish Times has learned that staff at the lower end of three management pay grades, including branch managers, may receive a pay increase if they receive top ratings in performance evaluations. Those on the other two executive grades will not receive any salary hikes, according to sources.
The news comes as Bank of Ireland’s chief executive since last October, Francesca McDonagh, reins in costs ahead of a key gathering of analysts and investors – or what is known as a capital markets day – in June. The chief executive will outline five-year targets at the event as well as details about how the bank plans to cut costs further under its ongoing €900 million information technology improvement plan.
Bank of Ireland is seeking to cut 15 per cent of manager and executive roles, amounting to up to 200 employees, by the end of June. It will be followed by another round of cuts across these grades later this year.
Last week, the lender, which is 14 per cent State-owned, revealed that it is closing its 27 back-office service centres around the country, affecting 420 employees as their activities are centralised and a number of temporary projects conducted at the locations draw to an end.
While the bank has informed affected employees that there are currently 160 openings across the group, mainly in consumer-facing positions, it is likely that more than 200 staff will leave the bank under a voluntary redundancy plan or through early retirement.
Ms McDonagh, a former HSBC executive in the UK, outlined in February that she will cut Bank of Ireland’s operating costs this year, after they rose by 3 per cent in 2017 to €1.8 billion.