Irish Life and Permanent paid out less to its directors and executives last year, as a result of a reduction in salary for its chief executive and the elimination of certain bonus payments and additional pension contributions.
The group's annual report showed that IL&P paid out more than €1.4 million in remuneration packages to its directors in 2010, down from €11.1 million a year earlier. The total includes salaries, pension contributions and expenses incurred by long-term incentive plans during the year.
The significant decrease was due to additional pension contributions of €7.3 million made in 2009, which were paid at the request of the trustees to allow pensions to be paid to executive directors who were retiring. Former chief executive Denis Casey, who resigned over controversial deposits into Anglo Irish Bank, received €2.93 million towards his pension that year.
According to the annual report, the chief executive Kevin Murphy saw his salary reduced to €500,000 last year in line with the Government's guidelines on executive pay in financial institutions. In 2009, his basic salary was €515,000, leading to a total remuneration package of €744,000. Last year, that total decreased to €538,000.
Chief financial officer David McCarthy, who was appointed to the board in February 2009, was paid €532,000 in total in 2010, with a salary of €497,000.
There was no increase in the directors' basic salaries last year, and no bonus payments were made.
In its annual report, the group said it reviews non-executive director fees on a regular basis.
Chairwoman Gillian Bowler received €200,000 in 2009 and 2010, after her fees were reduced by 29 per cent from January 1st, 2009. Ms Bowler, who will step down in May, was the highest paid non-executive director on the board, followed by Breffni Byrne, who also serves as chairman of the audit committee, on €103,000 and €84,000 in 2009 and 2010 respectively.
Mr Byrne and fellow director Danuta Gray will step down as non-executive directors at the next annual general meeting in May.
