BANK OF Ireland chief executive Richie Boucher received a top-up to his pension of €1.49 million last year. This was part of a total remuneration package worth €1.99 million for the bank boss.
These figures are outlined in the company’s annual report for the nine months to December 31st, 2009.
The bank said the top-up was to meet “contractual arrangements that now include an option to retire at age 55 on a pension of circa 59 per cent of his salary”. Based on his current salary of €623,000, Mr Boucher will receive a pension of €367,570 a year.
The bank’s normal retirement age is 60 for its executive directors, who are usually entitled to receive a pension worth two-thirds of their salary.
A spokesman for Bank of Ireland said the pension payment had received “all the appropriate approvals” from the Department of Finance and the National Pension Reserve Fund, which holds a 15.7 per cent stake in the bank on behalf of the State.
Mr Boucher earned a gross salary of €508,000 for the nine-month period, but waived €45,000 of this. He also received a car allowance of €43,000. He had been paid €1.06 million in the year to March 2009.
Bank of Ireland paid €4.6 million in the financial period to its board members. This compared with €8.6 million paid to its directors in the year to the end of March 2009.
Board members waived €174,000 in fees last year.
Governor Pat Molloy, who succeeded Richard Burrows as chairman on July 3rd, was paid €198,000 in the nine months to the end of December 2009. Mr Burrows earned €103,000.
The shorter reporting period that covers the bank’s latest annual report is to allow it to align its financial period with the calendar year.
The bank also yesterday published an update of its discussions with the European Commission in relation to its restructuring plan and the receipt of State aid. It announced plans to dispose of six assets, including New Ireland Assurance Company, Bank of Ireland Asset Management and ICS Building Society. It also confirmed previously announced plans to wind down its UK mortgage portfolio.
In addition, it will not pay a dividend before September 2012 and has committed to not making any “material acquisitions”.
Such a disposal programme would leave Bank of Ireland’s business focused on its core branch network in Ireland, its business banking arm in Britain and its joint venture with the post office in the UK.
The bank is also finalising its capital-raising plans. It is understood that it will seek to raise up to €3.3 billion from this exercise, with an announcement expected during the week beginning April 26th.