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AIB Bonuses
Cabinet to discuss AIB bonuses
The taoiseach says the cabinet will discuss whether they can stop the awarding of bonuses to AIB executives.
TAOISEACH BRIAN COWEN has said that the cabinet will meet tomorrow to discuss bonuses due to be awarded to AIB executives.
Speaking in the Isle of Man, Cowen said that he and his colleagues would discuss potential ways to block the bonuses being awarded, RTÉ reports.
AIB has received €3.5bn in state aid so far – but is planning to award €40million worth of bonuses for 2008. The bank says that, due to a High Court ruling earlier this year, it has concluded that it is contractually obliged to award the bonuses.
However, reports over the weekend show that AIB did not contest the case in question, which was brought to the court by trader John Foy. Without a defence by AIB, the High Court had no choice but to rule in Foy’s favour, which in turn set a precedent for other AIB employees to demand bonuses.
Cowen said that the government is looking at “every possible option” in relation to the issue.
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