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Bankers may be 'in breach of contracts': Shatter

The Justice Minister has described the multimillion euro retirement package given to former AIB MD Colm Doherty as “grossly immoral” – and said that bankers who run their institutions poorly should be considered to be “in breach of contract”.

Justice Minister Alan Shatter says disgraced bankers should
Justice Minister Alan Shatter says disgraced bankers should "hang their heads in shame".
Image: Sasko Lazarov/Photocall Ireland

JUSTICE MINISTER Alan Shatter says bankers whose banks are effectively in liquidation might not be entitled to contractually based retirement packages.

He also condemned the payment of €3 million to Colm Doherty of AIB, calling such golden handshakes “grossly immoral”. Speaking at the annual conference of the Association of Garda Sergeants and Inspectors in Limerick on Wednesday, Shatter said that such a payment “defies belief” and said that Irish taxpayers should not be forced to carry the burden of retired bankers leading “lives of unjustified luxury”, reports the Irish Times.

Shatter acknowledged that some executives had such retirement packages tied into their contracts, but said that employment contracts were a “two-way” thing – and that some bankers had run their institutionS so badly as to amount to a “fundamental breach of contract”, the Irish Examiner reports. Shatter said that, rather than expecting rewards for their behaviour, those responsible for contributing to the economic collapse should “hang their heads in shame”.

The minister said that he was exploring ways to ensure such generous retirement packages would not be repeated – and said that no bankers should be paid any kind of bonus while Ireland is still enduring economic hardship of this scale, reports the BBC.

Listen to Shatter speak on Newstalk.ie >

Read more: €3 million for former AIB managing director >

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