MINISTER FOR FINANCE Michael Noonan has suggested that a state-imposed pay cap may not apply to Bank of Ireland’s new boss.
Under rules introduced in 2009, executives at bailed-out banks have had their salaries capped at €500,000.
The only exception to the rule was Bank of Ireland’s outgoing chief Richie Boucher because he was appointed before the cap was introduced.
His salary has been €690,000 throughout his tenure. His total compensation last year was €958,000.
According to a number of media reports, Noonan has said that he was willing to see the bank’s next chief receive a similar pay package.
The finance minister said that it depends on who is appointed, but he thinks “the parameters for negotiating pay will be somewhere in line with Richie Boucher’s”, according to news agency Reuters.
The Irish state currently owns a 14% stake in Bank of Ireland. The company reported an underlying profit of just over €1 billion for the year ended 31 December 2016.
Some might question whether the cap should apply to the bank since it is largely privately-owned and profitable.
With that in mind, we’re asking Fora readers this week: Should bosses of bailed-out Irish banks have their salaries capped?