Central bank payroll rises to over 200 million euros amid rising economic uncertainty

The Central Bank of Ireland (CBI) will increase its payroll by 4% to more than €200m under a budget approved by the bank’s board in November, equivalent to more than half of the bank’s planned operating expenditure.

Data from a meeting of the Central Bank Commission shows total wages will increase by €8.4 million next year, against a total operating budget of just over €371 million.

The increased budget, which excludes the additional investments needed in 2023 to fund what the CBI calls its “transformational work portfolio,” was well below current levels of inflation, reflecting the bank’s desire to be cautious.

“Concerns have been raised about adding fixed resources at a time when profits are declining and costs may exceed revenues in the coming period,” the minutes read.

“Members noted that there was an uncertain economic environment and there had to be a very compelling reason for embedded increased spending.” The minutes also indicated that the CBI could trim discretionary projects over the next year to stay within cost parameters .

A report by Sarah Keane, Chair of the Major Projects Committee, found that capacity to take on new projects in 2023 is limited, including an external review of the CBI’s IT systems and processes.


Central Bank of Ireland headquarters in Dublin. Photo: Artur Widak/Getty

“Most of the projects were for remedial or mandate-related purposes, and there were very few that were discretionary,” the minutes read.

“This would create challenges in advancing elements that would be seen as transformative without the required investment.

“One contribution to these considerations would be the external review of the IT function.”

According to the CBI’s 2021 annual report, 302 employees earned more than 100,000 euros in salary

Commissioners noted that there would be necessary compromises in the work of the CBI over the next year and “it was important to become familiar with them”.

The commission also requested a fuller explanation of the trend dynamics driving demand and costs for the bank recently, such as the size and complexity of the financial system it supervises.

Governor Gabriel Makhlouf told the commission he recognizes the challenges and the executive branch will focus on delivering on its long-term commitments, including ambitions to demonstrate effectiveness and efficiency.


Deputy Central Bank Governor Sharon Donnery. Photo: David Conachy

At the December Commission meeting, the minutes of which are due to be published in January, a proposal on the strategic work portfolio and related additional investments linked to the strategic objectives will be discussed.

According to the CBI’s 2021 annual report, 302 employees, representing about 15 percent of the workforce, earned more than 100,000 euros in salary.

Mr Makhlouf earned a salary of €293,257 compared to €288,220 a year earlier.

Deputy Central Bank Governor Sharon Donnery’s salary for 2021 was €255,006.

They were among 12 senior central bank officials who were paid more than €190,000 last year.

https://www.independent.ie/business/irish/central-bank-payroll-to-top-200m-amid-rising-economic-uncertainty-42245553.html Central bank payroll rises to over 200 million euros amid rising economic uncertainty

Fry Electronics Team

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