Salary of new BOI chief to top Richie Boucher’s

Package on a par with Boucher as Francesca McDonagh foregoes pension for higher salary of about €952,000

Richie Boucher: total remuneration of €964,000 in 2017. Photograph: Aidan Crawley

Richie Boucher: total remuneration of €964,000 in 2017. Photograph: Aidan Crawley

 

Bank of Ireland chief executive Francesca McDonagh is to receive a salary of €952,000 a year, or about 37 per cent higher than that paid to her predecessor Richie Boucher.

However, as Ms McDonagh does not participate in the bank’s employee pension scheme, her overall remuneration will be largely the same as that of Mr Boucher.

This is revealed in the bank’s annual report, published on Monday, which also shows that Ms McDonagh was approved for a mortgage facility of €985,000. This loan had not been drawn down by the year end.

The bank’s 2017 annual report, published on Monday, shows that Mr Boucher, who stepped down on October 1st last, received total remuneration of €964,000 in 2017, consisting of €690,000 in salary, other fees of €34,000 and a pension payment €240,000.

While the Government introduced a salary cap on banking executives of €500,000 in 2009, Mr Boucher’s remuneration was never bound by this.

Ms McDonagh received a salary of €238,000 for the last three months of 2017, as well as other benefits, including a car allowance of €8,000. On a full year basis, this would indicate a salary of €952,000.

Salary cap

Prior to her appointment, the Government had indicated that the salary cap of €500,000 would apply to an internal candidate, but that more flexibility would apply to an external appointment.

Ms McDonagh joined Bank of Ireland having spent 20 years in a number of senior roles with HSBC Group.

Francesca McDonagh, Bank of Ireland group chief executive, won’t receive any pension contributions from the bank but will receive a higher salary instead than her predecessor Richie Boucher. Photograph: Dave Meehan/The Irish Times
Francesca McDonagh, Bank of Ireland group chief executive, won’t receive any pension contributions from the bank but will receive a higher salary instead than her predecessor Richie Boucher. Photograph: Dave Meehan/The Irish Times

The report also details remuneration among other senior executives of the bank. No performance bonuses were paid during the year, a situation that has existed since 2008.

Chief financial officer Andrew Keating received a salary of €468,000, and total remuneration of €552,000.

Chairman Archie Kane, who is set to leave the bank by the end of this year, was paid total remuneration of €490,000 in 2017. This included fees of €59,000 he earns due to a consultancy arrangement he has with the bank’s UK subsidiary, as well as an allowance of €37,000 for accommodation, car, and utilities.

Deputy governor Patrick Kennedy, who is regarded as a strong contender to succeed Mr Kane, received remuneration of €126,000.

Non-executive directors, including FBD chief executive Fiona Muldoon, Patrick Mulvihill and David Marston, received fees of between €71,000 and €154,000, on a full-year basis.

In total, directors’ remuneration rose by 8 per cent last year to €3.1 million.