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Nama: Developers will not be paid "bonuses" but they may get financial rewards

Three developers are on over €200,000 from the state bad bank.

Image: Eamonn Farrell/Photocall Ireland

Update 6.43 pm 

DEVELOPERS WORKING WITH Nama will not be paid bonuses, they may however receive financial rewards if the come in ahead of targets.

That’s according the Nama who have rejected the word ‘bonus’ that was introduced yesterday at the Dáil Public Accounts Committee.

The agency’s CEO Brendan McDonagh said that €10 million had been paid in salaries to 120 developers last year, with three earning over €200,000.

When asked if bonuses would be paid, he said that is “something that is under consideration the whole time”, but said that the numbers who received such bonuses would be very small.

“We have to take the circumstances into account. As the market changes to try and achieve the objectives that have been set for us, in terms of realising the best value for the assets.

“I think there would be very few people in the NAMA portfolio who would be potentially eligible for that.”

But Nama have attempted to clarify the comments saying that the term bonus was introduced by a TD and not McDonagh.

In statement released this evening, the state’s bad bank says that debtors working with them may enter into “incentivisation arrangements” whereby they “retain a small proportion of any excess achieved above target levels”.

“The vast share of any excess will go to Nama and ultimately to taxpayers if the stretch financial targets are achieved,” the agency says.

Nama adds that at this point they feel that “very few” debtors will achieve the necessary targets. Despite this, the agency adds that the incentives are worthwhile to encourage the developers to “extract maximum value” from their assets.

Particularly, Nama adds, given the shortage of residential housing in urban areas.

At yesterday’s meeting, McDonagh also disagreed that Nama is too soft on developers.

“We have been before this committee and have had to defend ourselves against the view that we have been too soft on debtors.

“There seems to be a suggestion that we have been too demanding of some debtors. We disagree with both of these assertions.”

In terms of salaries, McDonagh said that:

  • Three developers earned over €200,000 last year
  • Thirteen earned between €150,000 and €199,000
  • Thirty-two are being paid between €100,000 and €149,000
  • Forty-seven get between €50,000 and €99,000
  • Twenty-seven get paid up to €49,000

- Additional reporting by Rónán Duffy

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