Dáil Éireann - Volume 674 - 10 February, 2009

Written Answers. - Financial Institutions Support Scheme.

Deputy Joan Burton asked the Minister for Finance if, following the bank guarantee scheme, the recapitalisation scheme and the nationalisation of Anglo Irish Bank, he has had discussions with each of the covered institutions in respect of salaries, bonuses other emoluments, pension contributions and entitlements of directors and staff in each of the covered institutions; and if he will make a statement on the outcome of these discussions and the changes he has agreed in respect of the pay bonuses pensions and compensation package for directors and staff of each institution. [4237/09]

  Deputy Brian Lenihan: As I have mentioned in previous answers to parliamentary questions, under the terms of the Credit Institutions (Financial Support) Scheme 2008, I established the Covered Institutions Remuneration Oversight Committee (CIROC) to oversee the remuneration of senior executives of the covered institutions. The Scheme requires each covered institution to prepare and submit a plan to structure the remuneration packages of directors and executives so as to take account of the objectives of the Scheme.

The relevant plans have been prepared and submitted by the covered institutions, and in line with the timeframes set out in the Scheme, CIROC will report to me on or before 5th March 2009, making a recommendation where appropriate, on the compliance by the institution with the terms of the Scheme. The Scheme provides that if required, I may direct the institution to amend the remuneration plan to comply with the Scheme.

The Deputy will be aware that the Taoiseach announced to the House on the 4th of February that in the context of recapitalisation of the banks, that he would expect director’s fees to be cut by 25% and when they appoint their top executives there would be an upper limit on remuneration and that he would expect that to be at least 25% below current levels.