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No pay cuts for high earners at former Anglo Irish Bank

Michael Noonan said wage reductions could make it difficult to hold on to staff at the IBRC.

The sign is removed from the former Anglo HQ last year
The sign is removed from the former Anglo HQ last year
Image: Eamonn Farrell/Photocall Ireland

HIGH EARNERS AT the former Anglo Irish Bank will not see their pay cut to bring it into line with public sector jobs, finance minister Michael Noonan has said.

Last week it emerged that 143 staff at the State-owned Irish Bank Resolution Corporation were earning salaries of more than €100,000 a year. Eight employees are paid more than €300,000 each annually.

Noonan said he had asked the IBRC board to consider pay cuts, but they had recommended that no reductions should be introduced as the bank is struggling to keep key staff.

Responding to a question from Fine Gael TD Eoghan Murphy, he said:

The decision not to pursue pay cuts is on the basis that staff retention is a critical issue for IBRC. There has been considerable reduction in staff numbers and current staff are being regularly headhunted by Banks and other organisations.

IBRC is currently engaged in attempting to recover assets from debtors, and Noonan said its board’s view is that the skills of staff are “integral” to this endeavour “

He said that he was accepting the board’s recommendation for the moment, but that it would be kept “under review”. Noonan added that he had requested “downward pressure” on the salaries of new recruits to IBRC.

Senior management at Anglo took a 20 per cent salary cut after the bank was nationalised, and there is no performance-related pay at IBRC, Noonan said.

More: 1,065 top bankers earn basic salary over €100k>

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Michael Freeman

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