Remuneration of AIB directors falls to £3.14m

 

TOTAL payments to executive and non-executive directors of AIB Bank fell by 8.6 per cent to £3.14 million for 1995.

A sharp drop in pension costs meant that total payments to executive directors were 12.3 per cent lower last year at £2.55 million. Non-executive directors cost the bank 12.4 per cent more at £591,000.

The AIB annual report shows that total payments to the Irish based executive directors fell by 27 per cent last year to £1.28 million, because of the sharp drop in pension costs. The average payment to each of these directors fell to £354,777 from £435,000.

But, when the impact of the sharp fall in pension costs is stripped out, the average payment to each of the Irish based directors increased to £304,000 in 1995 from £290,500 in 1994. The pension costs for the bank's Irish based directors fell to £181,000 last year from £578,000 in 1994 because of once off additional funding for early retirement in 1994.

Total payments including pension contributions to AIB's executive director in the US, Mr Jerry Casey, rose by 8.9 per cent to £1.276 million, matching the total payments to all the Irish based executive directors.

At year end, AIB had five executive directors and 13 non executive directors. But there were a number of board changes, during the year. Allowing for directors joining the board at different times throughout the year, there was an average of 6 executive directors for 1995, with one of these directors based outside Ireland. The Irish based executive directors at year end were Mr Tom Mulcahy, chief executive Mr Kevin Kelly Mr Michael Buckley and Mr Hugh Feeley, who retired on December 31st.

There was an average of 11.2 non executive directors in 1995. This compared with an average of four executive directors and 10 non executive directors in 1994.

A breakdown of payments to executive directors shows that total salaries paid to the Irish based executive directors fell to £682,000 from £696,000. But the average salary increased from, £174,000 to £189,000.

In addition to salaries, these executives shared performance related bonus payments of, £222,000 in 1995, down from £230,000. The average bonus payment per director increased to £61,667 from £57,500.

Mr Casey's salary was unchanged in dollar terms but a weaker dollar meant the cost to AIB in pounds was lower, down to £332,000 from £357,000.

His package was boosted this year by a payment of £273,000 under the bank's short term incentive plan which is based one achieving specific targets at First Maryland Bancorp. Another element which added £181,000 to" his 1995 package was AIB shares given to him under the bank's long term incentive plan.

Other elements of the executive directors total remuneration packages included

. fees they shared £87,000 (1994 £92,000)

. profit sharing they shared £28,000 (1994 £8,000)

. taxable benefits they shared £116,000 (1994 £172,000)

. pension contributions they cost AIB £632,000 (1994 £1.034 million).

The 12.4 per cent rise in payments to non executive directors reflected an increase in the number of directors as well as the 5.5 per cent increase in directors fees approved by shareholders at the bank's last annual general meeting.

AIB reported a 9 per cent rise in pre-tax profits to £373 million for 1995 with a 13 per cent increase in total assets to £23.5 billion.