Cabinet discusses easing rules on bankers’ salaries and bonuses after report recommends removing €500,000 cap

Treasury Secretary Paschal Donohoe will recommend lifting caps on bankers’ salaries and bonuses at state-backed banks.

r Donohoe received a report proposing to raise the €500,000 cap on bankers’ salaries at Bank of Ireland, while the same should also be considered for AIB and Permanent TSB.

The independent report also recommends that banks should be able to pay their employees bonuses of up to €20,000.

Banks that were bailed out by taxpayers after the financial crisis faced severe restrictions on wages and bonuses.

Now, in one of his last acts as Finance Minister, Mr Donohoe brings a memo to Cabinet on the findings of the inquiry he ordered after Ulster Bank and KBC left the Irish market.

Taoiseach Micheál Martin, Tánaiste Leo Varadkar and Green Party leader Eamon Ryan will discuss the findings of the report at their regular meeting on Monday evening.

It is understood the review will recommend removing the cap on bankers’ salaries at Bank of Ireland and suggests that the same should apply to AIB and PTSB if the government reduces its stake in the banks.

Banks can also offer benefits such as free health insurance, childcare and gym memberships to their employees as part of the report’s recommendations.

Sinn Féin finance spokesman Pearse Doherty said the report’s findings were “a kick in the face for families in need”.

“These restrictions were put in place as a result of the reckless actions that led to the financial crisis by senior bankers – bankers who put their own salaries ahead of the needs of consumers and society,” he said.

“We have since witnessed the Tracker mortgage scandal, which saw banks fined €270 million for the damage they caused their customers.

“To date, not a single banker has been held accountable for the untold damage and suffering inflicted on families and individuals.”

“Nevertheless, it is reported that the minister’s parting gift to the banking industry is to lift salary caps for senior bankers,” he added.

Mr Doherty said implementation of the report’s findings would be “deaf” and would ignore “the recent history of banking scandals, wrongdoing and harm”.

“As the taxpayer is yet to recover the more than €29 billion pumped into AIB, Bank of Ireland and PTSB during the financial crisis and after the Tracker mortgage scandal, for which no one has been held accountable If so, now is not the time to remove the salary cap for senior bankers,” he added.

https://www.independent.ie/irish-news/politics/cabinet-to-discuss-easing-rules-on-banker-pay-and-bonuses-after-report-recommends-lifting-500000-cap-42180279.html Cabinet discusses easing rules on bankers’ salaries and bonuses after report recommends removing €500,000 cap

Fry Electronics Team

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